Income from Undisclosed Sources Applicability of Enhanced Rate of Tax (60 Percent) Under Section 115BBE

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The Tax Publishers Income Tax--Income from undisclosed sources Applicability of Enhanced Rate of Tax (60 Percent) Under Section 115BBE Pawan Prakash The Taxation Laws (Second Amendment) Act, 2016 has substituted Section 115BBE(1) from the assessment year 2017-18 so as to provide higher rate of tax on income referred to in Sections 68 to 69D. The issue as to applicability of amended provision of Section 115BBE is being discussed in this write-up. 1. Section 115BBE as originally inserted by Finance Act, 2012 Section 115BBE as originally inserted by the Finance Act, 2012 read as under - (1) Where the total income of an assessee includes any income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C or 69D, the income-tax payable shall be the aggregate of - (a) the amount of income-tax calculated on income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C or Section 69D, at the rate of thirty per cent; and (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the referred to in clause (a). (2) Notwithstanding anything contained in this Act no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Income from undisclosed sources

Applicability of Enhanced Rate of Tax (60 Percent) Under Section 115BBE

Pawan Prakash

The Taxation Laws (Second Amendment) Act, 2016 has substituted Section 115BBE(1) from the assessment year 2017-18 so as to provide higher rate of tax on income referred to in Sections 68 to 69D. The issue as to applicability of amended provision of Section 115BBE is being discussed in this write-up.

1. Section 115BBE as originally inserted by Finance Act, 2012

Section 115BBE as originally inserted by the Finance Act, 2012 read as under -

(1) Where the total income of an assessee includes any income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C or 69D, the income-tax payable shall be the aggregate of -

(a) the amount of income-tax calculated on income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C or Section 69D, at the rate of thirty per cent; and

(b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the referred to in clause (a).

(2) Notwithstanding anything contained in this Act no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1).