PPT: Aggregation of Income, Set-off and Carry Forward of Losses | Taxation for CA Intermediate PDF Download

 Page 1


 
 
1. Aggregation of Income 
 
  
Page 2


 
 
1. Aggregation of Income 
 
  
 
1. Aggregation of Income 
 
• In certain cases, some amounts are deemed as income in the hands of the assessee 
though they are actually not in the nature of income.  
 
• These cases are contained in sections 
– 68 – Unexplained Cash Credits 
– 69 - Unexplained Investments 
– 69A – Unexplained money 
– 69B - Amount of investments, etc., not fully disclosed in books of account.,  
– 69C –Unexplained Expenditure 
– 69D- Amount borrowed or repaid on hundi. 
 
• The Assessing Officer may require the assessee to furnish explanation in such cases. 
 
• If the assessee does not offer any explanation or the explanation offered by the 
assessee is not satisfactory, the amounts referred to in these sections would be deemed 
to be the income of the assessee. 
 
• Such amounts have to be aggregated with the assessee’s income. 
  
Page 3


 
 
1. Aggregation of Income 
 
  
 
1. Aggregation of Income 
 
• In certain cases, some amounts are deemed as income in the hands of the assessee 
though they are actually not in the nature of income.  
 
• These cases are contained in sections 
– 68 – Unexplained Cash Credits 
– 69 - Unexplained Investments 
– 69A – Unexplained money 
– 69B - Amount of investments, etc., not fully disclosed in books of account.,  
– 69C –Unexplained Expenditure 
– 69D- Amount borrowed or repaid on hundi. 
 
• The Assessing Officer may require the assessee to furnish explanation in such cases. 
 
• If the assessee does not offer any explanation or the explanation offered by the 
assessee is not satisfactory, the amounts referred to in these sections would be deemed 
to be the income of the assessee. 
 
• Such amounts have to be aggregated with the assessee’s income. 
  
 
 
2. Concept of Set-off and Carry   Forward of 
Losses 
  
Page 4


 
 
1. Aggregation of Income 
 
  
 
1. Aggregation of Income 
 
• In certain cases, some amounts are deemed as income in the hands of the assessee 
though they are actually not in the nature of income.  
 
• These cases are contained in sections 
– 68 – Unexplained Cash Credits 
– 69 - Unexplained Investments 
– 69A – Unexplained money 
– 69B - Amount of investments, etc., not fully disclosed in books of account.,  
– 69C –Unexplained Expenditure 
– 69D- Amount borrowed or repaid on hundi. 
 
• The Assessing Officer may require the assessee to furnish explanation in such cases. 
 
• If the assessee does not offer any explanation or the explanation offered by the 
assessee is not satisfactory, the amounts referred to in these sections would be deemed 
to be the income of the assessee. 
 
• Such amounts have to be aggregated with the assessee’s income. 
  
 
 
2. Concept of Set-off and Carry   Forward of 
Losses 
  
 
  
Page 5


 
 
1. Aggregation of Income 
 
  
 
1. Aggregation of Income 
 
• In certain cases, some amounts are deemed as income in the hands of the assessee 
though they are actually not in the nature of income.  
 
• These cases are contained in sections 
– 68 – Unexplained Cash Credits 
– 69 - Unexplained Investments 
– 69A – Unexplained money 
– 69B - Amount of investments, etc., not fully disclosed in books of account.,  
– 69C –Unexplained Expenditure 
– 69D- Amount borrowed or repaid on hundi. 
 
• The Assessing Officer may require the assessee to furnish explanation in such cases. 
 
• If the assessee does not offer any explanation or the explanation offered by the 
assessee is not satisfactory, the amounts referred to in these sections would be deemed 
to be the income of the assessee. 
 
• Such amounts have to be aggregated with the assessee’s income. 
  
 
 
2. Concept of Set-off and Carry   Forward of 
Losses 
  
 
  
2. 1. Set-off of Losses 
• Specific provisions have been made in the 
Income-tax Act, 1961 for the set-off and carry 
forward of losses. 
 
• In simple words, “Set-off” means adjustment 
of losses against the profits from another 
source / head of income in the same 
assessment year.