Section 68 of Income Tax Act 1961 - What is the Cash Credit?

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