Preface
Nowadays it has become very difficult to evade tax by resorting to various means like undisclosed investments, unexplained or unaccounted money, cash credits etc. The Government has become more vigilant and has improved its back-end system for collating, processing and analysing data available from various sources. Annual information return is one of the most important tools with the Income Tax Department for obtaining informations regarding one's income and investment. The tax authorities use such informations to tally the disclosed or reported income of the assessees with their investments or expenditures. If any variation is found and no satisfactory explanation is provided regarding the source of unreported investment or expenditure, the same may be treated as deemed income under sections 68 to 69D, as the case may be.
In case where any sum is found credited in the books of an assessee maintained for any previous year for which no explanation about the nature and source thereof is provided or the explanation offered is not satisfactory in the opinion of the assessing officer, addition can be made by invoking section 68.
Unaccounted money is also circulated in form of loans, borrowings, gifts etc. Recently, the Finance Act, 2022 has amended section 68 so as to provide an additional onus to prove source of source in case of loan or borrowing or any such amount by whatever name called. Thus now loan creditors are also required to prove the source of amount extended as loan.
Other deeming provisions dealing with income from undisclosed sources, are contained in sections 69, 69A, 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.
After introduction of section 115BBE, tax on such deemed income is levied at a higher rate of 60 percent. Apart from such higher rate of tax, penalty is also levied under section 271AAC on fulfillment of certain conditions. Thus there are serious tax and penal consequences when any undisclosed income is found by the revenue authorities.
The present Book aims at providing thorough and analytical study of the deeming provisions contained in sections 68 to 69D. A separate part is devoted for discussing taxation under section 115BBE and other penal consequences in detail.
Apart from treatment and taxation of income from undisclosed sources, the treatment of cash transactions has also been discussed in detail in a separate part. This part includes the disallowance provision contained in section 40A(3), restrictions provided under section 269SS, 269ST 269SU and 296T, and certain other consequences of cash transactions.
The scheme of presentation of the subject matter is as under --
The present book is updated in the wake of the Finance Act, 2022 and all the important case law available to us upto September, 2022 have been incorporated in the book.
I feel that this work of mine 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 aiming at meeting totality of the requirements in regard to handling income from undisclosed sources and its taxation under section 115BBE along with cash transactions of all sorts, together with their consequential implications.
Though I have tried to make it an error free and quality publication, I shall remain grateful for any valuable and constructive suggestions from our esteemed readers towards improvement of any sort, of course.
|
JODHPUR |
CA. (Dr.) NISHA BHANDARI |
|
5 OCTOBER, 2022 |
|
|
VIJAYADASHMI/DUSSEHRA |
|