26 as shown in SFT code-003

Question BankCategory: Income Tax26 as shown in SFT code-003
Kollipara sundaraiah asked 2 weeks ago

Assess source of income professional sec 44ab audited I.t returns filed person.but assess 26 as download in f.y 19-20 details mentioned below.
 
1.type of transaction  code:SFT code -003
2.name of the SFT filer: bank of India
3.transaction : cash deposit in current account.
4.amount: 90 lacs.
Question:
Assess above shows transaction in 26 as what take action in f.y 19-20.
 

1 Answers
Rabindra answered 1 week ago

New format of 26AS shows detail of major financial transactions above a specified limit. Hence your 26AS shows detail of cash deposit of Rs. 90 Lacs..hence this information is available with income tax department. You must have valid explanation for the this transaction. You need to calculate your income as per income tax provisions, considering that you may have to explain source of such transactions if your ITR appears to be contrary for such transactions. 
Accordingly, Section 68 considers any sum credited in the books of taxpayer in any financial year and not already offered to tax, as income of taxpayer during such financial year if the following conditions are satisfied:

  • Taxpayer offers no explanation about the nature and source of such credit; or
  • Explanation offered by taxpayer about the nature and source of such credit is not satisfactory in the opinion of assessing officer.

Such credit is referred to as unexplained cash credit. But if you have enough explanation and documentation and above transaction is your routine business transaction then it may not be taxed directly and taxable income (calculated as per provisions of income tax) will be taxed normally. 
 

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