Preface
Cashless economy or digital economy is one of the prime objectives of the present Government. Demonetisation has been the first of the bold steps taken towards making the society go cashless. As tax avoidance and money laundering have led to massive problems and have increased burden on legitimate taxpayers, the efforts for going cash less or for less cash economy would help in bringing some parity in the society. Digital economy has several benefits in terms of transperancy, security, efficiency and convenience.
Keeping in view the benefits of digital economy, some important amendments have also been made in the Income Tax Act in recent past so as to restrict cash transactions and promote digital transactions. Sections 269ST and 271DA have been inserted with the objective to restricting transactions in cash. This provision would be very useful in countering generation of black money as it is applicable to almost all assessees and in respect of all transactions with very few exceptions. As the implications of this provision are very severe, one has to be aware of its applicability in different scenarios.
Insertion of section 269SU and section 271DB is one more measure undertaken in the Finance Act, 2020 for promoting digital economy.
Apart from dealing with cash transactions, the present book also covers treatment of Income from Undisclosed Sources. During assessment proceedings sometimes it is noticed that a certain sum is found credited in the books of an assessee maintained for any previous year but the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not satisfactory in the opinion of the assessing officer. The statute provides for taxability of such cash credits under section 68 of the Income Tax Act, 1961. Certain other deeming provisions dealing with income from undisclosed sources, are contained in sections 69, 69A, 69B, 69B, 69C and 69D. Direct or indirect use of unaccounted cash is generally involved in the transactions intended to be covered via these deeming provisions.
The book also provides a thorough and analytical study of the provisions which are going to be invoked by tax authorities specially section 115BBE as inserted post demonetisation.
The present Book aims at discussing the tax treatment of all sorts of cash transactions and incomes from undisclosed sources. The scheme of presentation of the subject matter is as under --
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Part I |
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Disallowance in Respect of Cash Payment Exceeding Prescribed Limit [Section 40A(3)] |
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Part II |
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Section A : Taxation and Penal Consequences of Income from Undisclosed Sources |
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Section B : Cash Credits [Section 68] |
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Section C : Unexplained Investments [Section 69] |
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Section D : Unexplained Money, Jewellery, Etc. [Section 69A] |
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Section E : Amount of Investments, Etc., Not Fully Disclosed in Books of Accounts [Section 69B] |
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Section G : Amount Borrowed or Repaid on Hundi [Section 69D] |
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Section H : Demonetisation vis-ą-vis Income from undisclosed sources |
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Part III |
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Acceptance or Repayment of Loan/Deposit/Specified Sum or Advances in Cash [Sections 269SS and 269T] |
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Part IV |
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Apart from the incorporation of the effects of amendments in related statutory provisions via post Finance Act, 2020, the whole lot of important judicial pronouncements (over 1900 of them) available to us upto June 2020 stood included in this book. We feel that this work of ours will be useful for one and all concerned with tax practice, tax administration and business, for the subject-matter covered herein is one which is of day-to-day relevance. The treatment is exhaustive enough aimed at meeting totality of the requirements in regard to cash transactions of all sorts, together with their consequential implications. Free web site support comprises Full Reports of practically all the decisions cited in the text of the book and also includes reproduction of the text of the Circulars, Notifications, etc. referred to in the text of the book.
Though we have tried to make it an error free and quality publication, we shall remain grateful for any valuable and constructive suggestions from our esteemed readers towards improvement of any sort, of course.
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JODHPUR |
Dr. AVADHESH OJHA |
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27 JULY, 2020 |
CA. (Dr.) NISHA BHANDARI |