Section 68 of income tax act 1961
| Cash Credits | undisclosed source of income | Advocate rajat punyani
#Section68ofincometaxact1961
#whatisthecashcredit
#Advocaterajatpunyani
# cash credit kya hota hai
# undisclosed sources of income
# Cash credits
# advocaterajatpunyani
Main points:
1. Books of accounts is necessary for invoking section 68.Loose papers or sheets can not be termed as books of accounts as they can be replaced easily.
2. Books of accounts must be related to the taxpayer.
3. There must be an amount which is credited in the books of accounts.
4.Cash credit is found in the books of accounts of the assessee and assessee does not offer any explanation about the nature or source of the credit or
5.explanation offered by the assessee is not satisfactory in the opinion of the assessing officer
Deemed income u/s 68 = amount so credited
tax rate = 78% ( 60% income tax + 25% surcharge+ 4% Health and education cess
Penalty u/s 271AAC = 10% of the income tax
