Amount borrowed or repaid on hundi [ Section 69D Read with Section 115BBE ] - Income Tax - Ready Reckoner - Income Tax

Amount borrowed or repaid on hundi [ Section 69D ] Where any amount is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than through an account payee cheque drawn on a bank, the amount so borrowed or repaid shall be deemed to be the income of the person borrowing or repaying the amount aforesaid for the previous year in which the amount was borrowed or repaid, as the case may be. Provided that, if in any case any amount borrowed on a hundi has been deemed under the provisions of this section to be the income of any person, such person shall not be liable to be assessed again in respect of such amount under the provisions of this section on repayment of such amount. Explanation . -For the purposes of this section, the amount repaid shall include the amount of interest paid on the amount borrowed . Tax and Penalties on such unexplained Investment Tax u/s 115BBE- Where the total income of an assessee includes income u/s 68 / 69 / 69A / 69B / 69C / 69D , the total income tax payable shall be aggregate of- Income tax @ 60 % on income under the specified sections, and Income tax payable by assessee had his total income being reduced by the amount of income under these specified sections. Earlier, the rate was @30% on such income of undisclosed nature. This rate was changed to @60% w.e.f. 1/4/2017.) No deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee in computing his income under the specified sections. Surcharge - In respect of any income chargeable to tax under section 115BBE(1)(i) of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, calculated at the rate of 25% of such income-tax. Penalty u/s 271AAC - Where income of assessee includes income u/s 68 / 69 / 69A / 69B / 69C / 69D , the following officers - Assessing Officer ; or Joint Commissioner (Appeals) ; or Commissioner (Appeals) may (in addition to tax payable under section 115BBE ) impose penalty, @10% of tax payable under section 115BBE on such income. No penalty shall be levied if income under these specified sections is included in return of income u/s 139 and tax has been paid under section 115BBE on or before the end of the relevant PY. If Penalty has been imposed under section 271AAC(1) then Section 270A penalty does not imposed again on the assessee.