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Notes 7
Notes 7
111A
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Unexplained money, investments etc. to attract tax @60% [Section 115BBE]
In order to control laundering of unaccounted money by availing the benefit
of basic exemption limit, the unexplained money, investment, expenditure,
etc. deemed as income under section 68 or section 69 or section 69A or
section 69B or section 69C or section 69D would be taxed at the rate of 60%
plus surcharge @25% of tax. Thus, the effective rate of tax (including
surcharge@25% of tax and cess@4% of tax) is 78%.
No basic exemption or allowance or expenditure shall be allowed to the
assessee under any provision of the Income-tax Act, 1961 in computing such
deemed income.
Further, no set off of any loss shall be allowable against income brought to tax
under sections 68 or section 69 or section 69A or section 69B or section 69C or
section 69D.
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