Gross Total Income is a cumulative income which is computed under the five minds of income, i.e., salary, house property, business or job, capital gain and other options. Gross total income is computed following the clubbing procedures and making modifications of set-off and bring forward of loss. In this specific article, we look at trades protected under Section 68 to 69D of the Tax Work, 1961 which must be contained in Gross Total Income.
Section 68 – Cash/Lender Credit
This portion of the Income-tax Act handles unexplained taxes credit. It claims that any amount acknowledged in the literature of the taxpayer that a conclusion is not made available from him/her, or the reason offered wasn’t found to be reasonable by the worried Assessing Official (AO), the income would be classed under cash credit and could be taxable as the income of the taxpayer for this year.
Section 69 – Unexplained Investment
In case a taxpayers investments regarding any income source aren’t duly documented in the literature of profile, and he/she will not offer any justification for its aspect and source or if the reason so proposed by the individual wasn’t found to be reasonable by the Assessing Official (AO). The worthiness of assets would be looked at as the income of the taxpayer for this Assessment Year.
Section 69A – Unexplained Money & Other Assets
When a taxpayer is discovered as who owns any belongings such as money, bullion, jewelry, etc., and such belongings are not noted in the literature of account taken care of by the taxpayer; the belongings will be cared for as the income of the taxpayer for these 12 months. This provision is also relevant if the taxpayer hasn’t offered a conclusion or the reason so provided was regarded as dissatisfactory by the Assessing Official (AO).
Section 69B – Undisclosed or Lower Disclosed Investment
According to the section, when a taxpayer has spent or found to be who owns any valuable articles such as jewelry, and ownership of the same was not managed in the account looked after by the taxpayer or was not duly discussed by him/her; or the reason proposed by the worried taxpayer had not been found to be acceptable by the Assessing Official, the surplus amount so retained by the taxpayer will be considered to be the income of the taxpayer for this year.
Section 69C – Unexplained Expenditure
Section 69C of the Income-tax Function stipulates that if an assessee has incurred any expenses in the confirmed year that was either not discussed or the reason offered wasn’t found to be adequate by the Assessing Official; such fees would be considered to be taxable in the hands of the assessed for this financial yr. This taxable gross total income is prohibited from being deducted from any revenue.
Section 69D – Amount Lent or Repaid on Hundi
Section 69D of the Income-tax Function stipulates that, if hardly any money is borrowed on the hundi from, or repaid to, anybody other than through a merchant account payee cheque attracted on a bank, the total amount so refunded would be considered to be the income of the individual borrowing or repaying the total amount. Alternatively, if any amount of cash has been cared for as income of anybody by Section 69D, such person can’t be re-evaluated for the same business deal. Amount repaid would be including the quantity of interest remitted on the lent amount.