New Delhi, August 24: You will be charged up to 83 percent as income tax on unexplained cash credited in your bank account in the previous year. The whopping income tax will be levied under Section 69A of the Income Tax Act if unexplained cash is found in your bank account or you are found to be in possession of gold, jewellery or other valuable article which is not mentioned in your income tax records. Income Tax Refunds Worth Rs 88,652 Crore Issued to 24.64 Lakh Taxpayers Since April 2020.

If the income tax department finds cash credited in your bank account about which you either don't offer any explanation about the nature and source of such acquisition or if the Assessing Officer is not satisfied by your explanation, then such unexplained money will attract a high income tax at the rate of 83.25% (60% tax + 25% surcharge+ 6% penalty). The same tax rate will be applied if you are found to be the owner of unexplained money, gold and valuable ornaments. Income Tax Return Filing New Date: Last Date for Filing ITR for FY 2018–19 Extended Till September 30, 2020.

However, the 6 percent penalty will not be applied if the cash credit has already been included in the return of income and tax has been paid on or before the end of the relevant previous year. After Prime Minister Narendra Modi announced demonetisation of old Rs 500 and Rs 1000 currency notes in November 2018, many tax payers made huge cash deposits in their bank accounts, drawing the scrutiny of the income tax department.

The I-T department then offered a deal to the tax payers to settle the litigation by paying their taxes on such undisclosed incomes without any further questioning on such undisclosed incomes.

(The above story first appeared on LatestLY on Aug 24, 2020 12:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).