vinujaglan.com · Founder's official site 
How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
What each provision targets
| 1961 Act | 2025 Act | Target |
|---|---|---|
| 68 | 102 | Credits in books with no satisfactory explanation |
| 69 | 103 | Unrecorded investments |
| 69A | 104 | Money, bullion, jewellery not recorded |
| 69B | 103, 104 | Investments exceeding what books show |
| 69C | 105 | Unexplained expenditure |
| 69D | 106 | Hundi borrowings or repayments |
How these additions are defended
- Identity, creditworthiness and genuineness of the lender or payer — all three
- Cash deposits backed by recorded sales, withdrawals, agricultural income or savings history
- Gift deeds, loan confirmations with PAN and bank trail
- Books, GST returns and stock records that match
Worked example
Example
Example: A notice questions ₹12 lakh cash deposited after selling ancestral land. The sale deed, the buyer's bank withdrawal and the timing explain the source — the addition is not sustainable.
Common mistakes
- Explaining cash as ‘gift from relatives’ without proof
- Showing agricultural income without land records
- Taking cash loans above ₹20,000 (a separate penalty)
Frequently asked questions
No. The rate is fixed by law, and losses cannot be set off against such income. The defence lies in proving the source.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
