FCS Deepak Pratap Singh
Quick Summary
Dear Friends, It is our duty to pay our taxes on time and disclosing all our income in our returns properly. The income of an assessee is governed by the provisions of Income Tax Act, 1961. The Act, 1961 provides various types of exemptions, deductions and rebates to the assessees to reduce their
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
An unexplained cash credit is any sum found in the books of account of an assessee for which no satisfactory explanation of its source is provided to the Assessing Officer.
Section 68 applies if the assessee maintains books of account and a credit entry appears in those books, and the assessee either offers no explanation for the credit's nature and source, or the explanation provided is unsatisfactory to the Assessing Officer.
Unexplained cash credits are taxed at a flat rate of 60%, with a 25% surcharge and a 6% penalty, resulting in a total tax of 83.25%. No deductions, allowances, or loss set-offs are permitted against this income.
Generally, loose sheets or scraps of paper are not considered 'books of account' as they can be easily detached or replaced. For Section 68 to apply, the credit must be found in the assessee's actual books of account.
A penalty is not levied if the unexplained cash credit has already been included in the assessee's income return and the tax on it has been paid before the end of the financial year.
CAclubindia
