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section 68

MOHIT CHAUDHARY (19 Points)

08 July 2018

plz explain section 68

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195428 Points)
Replied 09 July 2018

1. 43-cash-credit

2. taxblog/sec68

3.unexplained-cash-credits

4. https://www.caclubindia.com/articles/section-68-of-income-tax-act-1961-9781.asp

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Anjali P Nair (ACA,ACMA) (582 Points)
Replied 09 July 2018

Section 68 of Income Tax Act 1961 deals with unexplained cash cerdit.

As per Section 115BBE, income tax shall be calculated at 60% where the total income of assessee consist of unexplained cash credit.

Conditions are

a) Income referred to in Section 68 reflected in the return of income furnished under Section 139; or

b) Which is determined by the Assessing Officer and includes any income referred to in Section 68 .

Such tax rate of 60% will be further increased by 25% surcharge, 6% penalty, i.e., the final tax rate comes out to be 83.25% (including cess). Provided that such 6% penalty shall not be levied when the income under Section 68, 69, etc., has been included in return of income and tax has been paid on or before the end of relevant previous year. No deduction in respect of any expenditure or allowance [or set off of any loss] shall be allowed to the assessee in computing his income referred to in clause (a) of sub-section (1) of Section 115BBE.

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