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cash credit vs unexplained investment

Srivardhan Mishra (3 Points)

19 December 2018

what is the basic difference between section 68 and section 69A of the Income Tax Act, 1961..

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Prerna Saraogi (1217 Points)
Replied 20 December 2018

Hi Sivardhan!

The basic difference between section 68 and section 69A is that, section 68 is for any amount that the assessee has credited in his accounts but is unable to explain the source of it. Whereas section 69A is for any money or bullion, jewellery or other valuable article that the assessee may possess but has not disclosed in his books of accounts and also cannot explain the source of such valuables.

Here's an exerpt from the Bare Act,

Cash credit

68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year :

Unexplained money, etc.

69A. 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 the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.

Hope it helps! :)

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