Have this cash in your account? You will be asked to pay 83.25 pct income tax
Did you transfer money into your bank account but never mentioned its source? Well, you may end up paying a heavy amount for this unaccounted money, if found by the Income-Tax department. According to Section 69A of Income Tax Act, if you are found to be the owner of any money, gold, jewellery or other valuable article in the previous year which is not recorded in your books, and you either don't offer any explanation about the nature and source of such acquisition or if the Assessing Officer is not satisfied by such explanation, then the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the taxpayer for such year.
Not just money, if you have gold or any other valuable item in your account, for which you offered no explanation about the nature and source or the income tax authorities are not satisfied by the explanation offered, is also taxed heavily at the above mentioned rate.
Such cash entry is called 'unexplained cash credit' under Section 68 of the Income Tax Act.
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What happens in these cases?
The unexplained money in your account attracts a high income tax at the rate of 83.25% (60% tax + 25% surcharge+ 6% penalty). However, the 6% penalty will not be applied if the cash credit has already been included in return of income and tax has been paid on or before the end of relevant previous year.
Meanwhile, the Central Board of Direct Taxes has said that it has so far issued direct tax refunds of over Rs 88,652 crore to more than 24.64 lakh taxpayers in the current financial year. The total refund includes Income Tax refunds of Rs 28,180 crore have been issued in over 23 lakh cases and corporate tax refunds of Rs 60,472 crore have been issued in over 1.58 lakh cases.
"CBDT has, so far, issued refunds of over Rs 88,652 crore to more than 24.64 lakh taxpayers from April 1, 2020 onwards. Income tax refunds of Rs 28,180 crore have been issued in 23,05,726 cases & corporate tax refunds of Rs 60,472 crore have been issued in 1,58,280 cases," the Income Tax Department said in a tweet on Friday.
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