Credit through bank transfer

An amount received through bank in a salaried person Account. Will it attracts tax liability.?

 

Does section 68 applies only on unexplained cash credit in bank or bank transfer also?

 

Replies (2)

If its in nature of income, then he must offer it to tax.

Where the assessee is not able to explain the nature & source of such receipt, then it shall attract tax liability being "unexplained money" u/s 69 or 69A r.w.s 115BBE. (section 68 is concerned with unexplained credits in  one's "books of accounts")

 

Regarding the 2nd question:

Bank Pass book (a.k.a Bank Statement) is not books of account for the purpose of Section 68.

In CIT, Poona v. Bhaichand H. Gandhi 141 ITR 67 (Bom.) it was held that the pass book supplied by the bank to the assessee cannot be regarded as the book of the assessee, that is, a book maintained by the assessee or under his instructions. Therefore a cash credit for the previous year shown in the assessee’s bank pass book but not shown in the cash book maintained by the assessee for that year, does not fall within the ambit of Section 68 of Income Tax Act, 1961.

Thus if AO finds any unexplained transaction in the bank passbook of the assessee then same can be taxed as unexplained money under Section 69A of the Act.

Rate of Taxability: –

As per Section 115BBE of the Income Tax Act, if the total income of an assessee includes any income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C and Section 69D, the income tax would be payable at the rate of 30% (plus surcharge, education cess and secondary and higher secondary education cess as applicable). Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of the Act, in computing his income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C and Section 69D.

 

what if the amount credited in a salaried person Account is a home loan of other person routed through his account

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details