Gaurav Bhardwaj (10 Points)
09 September 2024
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 09 September 2024
Section 68 of the Act provides inter alia that if any sum is found credited in the books of a taxpayer and he either does not offer any explanation about nature and source of such sum, or the explanation offered by him is not satisfactory in the opinion of Assessing Officer, then such sum can be taxed as his income.
Under such circumstances, the Assessing Officer may now be tempted to trigger the provisions of Section 115BBE of the Act read with Section 68 of the Act. This means that such income, though already offered to tax by the taxpayer, would be taxable at flat rate of 60 per cent on gross basis (i.e., without any deduction / allowance), (plus surcharge @ 25% on such tax and cess, as applicable). Thus effectively the rate comes to 77.25 per cent if such income is reflected in the return of income furnished u/s. 139.
Gaurav Bhardwaj
(10 Points)
Replied 10 September 2024
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 10 September 2024
Yes, as the total income is above 1 Cr.
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