Undiclosed income is taxed at 78% | Undisclosed source of income in india

Hi, Welcome to the taxreaders,

Today I am going to discuss about the taxation on undisclosed income in India that means the income you have earned doesn't have any explanation.
 

What if, if i have not disclosed my income ?

In a simple way if you earn money and income tax officer is asking you to how you earn this money and you have nothing to answer and if you answer to the income tax officer but tax officer thinks that it is not satisfactory then you have to pay 78% tax on your unexplained money, investment, etc.

one more thing is it will be taxed in the year in which it is detected.

Cash Credit

If any income is found in your account that means credited in your accounts and you have no explanation about this income and source of income  and if you have explain to the officer and he thinks that this reason is not satisfactory, the income which is credited in your books of account may be charged as income of the that person.
 

What if, if i have not disclosed my investments ?

Unexplained Investments and not fully disclosed investment
 
As same as above if you have made an investment and this investments are not recorded in your books of account or if recorded but not fully recorded and if you have not explain to the officer about this investments , the investments which is not recorded or recorded but fully disclose in your books of account may be charged as income of the that person.

 

What if, if i have not disclosed my money ?

Unexplained money

Same thing is hear if you have found as a owner of any money, Bullion, Jewellery, and other valuable things and it is not shown on you accounts then it will be charged as income of that person. and off course if you have satisfactory reason to than it will be OK, but your reason is not satisfactory, it will be charged as income.

 

What if, if i have disclosed false expenditure ?  

Expenditure

If you have made any expenditure and you have no explanation about this expenditure then it will be treated as income and taxed as per relevant rates.

Amount borrowed or repaid on hundi

when you have borrowed money or repaid when borrowed amount due and paid through other than account payee cheque it will taxable.

Source : Income Tax Act, 1961
Section 68 : Cash credit
Section 69 : Unexplained Investment
Section 69A : Unexplained Money
Section 69B : Investments, Money not fully disclosed
Section 69C : Unexplained Expenditure
Section 69D : Amount borrowed or repaid on hundi

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