What is unexplained expenditure?
Unexplained expenditure u/s. 69C refers to the ‘source of the expenditure’ and not to the expenditure itself; further, in the absence of any material found during the search, addition of expenditure would not be justified in the block assessment.
What is Cash credit U s68?
Unexplained Cash Credit ( Section 68 ) – Tax Treatment of Cash Credits. Credit of any sum to the taxpayer requires to be offered to tax unless it is specifically exempted as per tax provisions. In case such credit is not offered to tax by the taxpayer.
What is amount borrowed on Hundi?
Provisions of Section 69D: Amount borrowed on Hundi or Repayment of the same (including interest) has to be made by account payee cheque. If not through account payee cheque, the amount borrowed or repaid will be considered as Income in the year of borrowing or repayment.
What is cash credit in income tax?
Any sum found credited in the books of the taxpayer, for which he offers no explanation about the nature and source thereof or the tax authorities are not satisfied by the explanation offered by the taxpayer, is termed as cash credit.
What is Section 115BBE of Income Tax Act?
Section 115BBE of the Income Tax Act: Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D. (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).
What is Section 69A of Income Tax Act?
Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about …
What is Section 69D?
69D. Where any amount is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than through an account payee cheque drawn on a bank, the amount so borrowed or repaid shall be deem ….. X X X X Extracts X X X X. Login / Subscribe to Access Full Page.
What is Section 94B?
Section 94B is applicable on an Indian company or PE of a foreign company in India who has made borrowings from a non-resident who is an associated enterprise (AE) and. It incurs interest expenditure (by whatever name called) exceeding Rs. 1 crore in respect of such borrowings from non-resident AE and.
How many types of hundi are there?
The Negotiable Instruments Act, 1881, doesn’t characterize or incorporate arrangements for any Hundies. The hundi instalment is broadly acknowledged in India. There are 8 kinds of Hundies which incorporate Darshani, Miadi, Shahjog, Namjog, Dhanijog, Firmanjog, Jawabee, and Jokhami.
What are the different types of hundi?
Types of Hundi
- Sahyog Hundi: This is drawn by one merchant on another, asking the latter to pay the amount to a third merchant.
- Darshani Hundi: This is a hundi payable on sight.
- Muddati Hundi: A muddati or miadi hundi is payable after a specified period of time.
What is Section 115BAA?
Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions specified.
What does section 69D of the Income Tax Act 1961 do?
Chapter V I (Sections 66 to 80) of the Income Tax Act 1961 deals with the provisions related to aggregation of income and set off or carry forward of loss. Section 69D of IT Act 1961-2020 provides for amount borrowed or repaid on hundi.
What is the tax rate for 68, 69, 69b and 69D?
Tax rates applicable to amount charged to tax by virtue of sections 68, 69, 69A, 69B, 69C and 69D As per Section 115BBE, income tax shall be calculated at 60% where the total income of assessee includes following income:
Are there any tax deductions under section 69C?
Aforesaid unexplained expenditure which is deemed to be the income of the taxpayer by virtue of section 69C shall not be allowed as a deduction under any head of income.
Can a Hundi be treated as income under section 69D?
However it should be noted that if any amount borrowed on a hundi has been treated as income of any person by virtue of section 69D, than such person shall not be liable to be assessed again in respect of the same amount on repayment thereof.