Income Tax Act, 2025
Section 3: Ins. by Act 3 of 1989, s. 12 (w.e.f. 11989).
3. Ins. by Act 3 of 1989, s. 12 (w.e.f. 11989).
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respect of the previous year shall be adjusted against that amount, and the result shall be treated as the
member’s share in the income of the association or body.
(2) The share of a member in the income or loss of the association or body, as computed under
sub-section (1), shall, for the purposes of assessment, be apportioned under the various heads of income
in the same manner in which the income or loss of the association or body has been determined under
each head of income.
(3) Any interest paid by a member on capital borrowed by him for the purposes of investment in the
association or body shall, in computing his share chargeable under the head “Profits and gains of business
or profession” in respect of his share in the income of the association or body, be deducted from his share.
Explanation.—In this section, “paid” has the same meaning as is assigned to it in clause (2) of
section 43.]
68. Cash credits.—Where any sum is found credited in the books of an assessee maintained for any
previous year, and the assessee offers no explanation about the nature and source thereof or the
explanation offered by him is not, in the opinion of the 1[Assessing Officer], satisfactory, the sum so
credited may be charged to income-tax as the income of theassessee of that previous year:
2[Provided that where the assessee is a company (not being a company in which the public are
substantially interested), and the sum so credited consists of share application money, share capital, share
premium or any such amount by whatever name called, any explanation offered by such assesseecompany shall be deemed to be not satisfactory, unless—
(a) the person, being a resident in whose name such credit is recorded in the books of such
company also offers an explanation about the nature and source of such sum so credited; and
(b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be
satisfactory:
Provided further that nothing contained in the first proviso shall apply if the person, in whose name
the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred
to in clause (23FB)of section 10.]
69. Unexplained investments.—Where in the financial year immediately preceding the assessment
year the assessee has made investments which are not recorded in the books of account, if any,
maintained by him for any source of income, and the assessee offers no explanation about the nature and
source of the investments or the explanation offered by him is not, in the opinion of the 1[Assessing
Officer], satisfactory, the value of the investments may be deemed to be the income of the assessee of
such financial year.
3[69A. Unexplained money, etc.—Where in any financial year the assessee is found to be the owner
of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable
article is not recorded in the books of account, if any, maintained by him for any source of income, and
The share of a member in the income or loss of the association or body, as computed under
sub-section
Any interest paid by a member on capital borrowed by him for the purposes of investment in the
association or body shall, in computing his share chargeable under the head “Profits and gains of business
or profession” in respect of his share in the income of the association or body, be deducted from his share.
Explanation.—In this section, “paid” has the same meaning as is assigned to it in clause
of
section 43.]
68. Cash credits.—Where any sum is found credited in the books of an assessee maintained for any
previous year, and the assessee offers no explanation about the nature and source thereof or the
explanation offered by him is not, in the opinion of the 1[Assessing Officer], satisfactory, the sum so
credited may be charged to income-tax as the income of theassessee of that previous year:
2[Provided that where the assessee is a company (not being a company in which the public are
substantially interested), and the sum so credited consists of share application money, share capital, share
premium or any such amount by whatever name called, any explanation offered by such assesseecompany shall be deemed to be not satisfactory, unless—
the person, being a resident in whose name such credit is recorded in the books of such
company also offers an explanation about the nature and source of such sum so credited; and
such explanation in the opinion of the Assessing Officer aforesaid has been found to be
satisfactory:
Provided further that nothing contained in the first proviso shall apply if the person, in whose name
the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred
to in clause