Section 115BBE(1) provides for tax on income referred to in sections 68, 69, 69A, 69B, 69C and 69D at a higher rate of 60% (+ 25% SC + EC + SHEC). Sub-section (1) of section 115BBE covers the following cases —
Clause (a) to section 115BBE(1) –
Total income of the assessee includes any income referred to in sections 68 to 69D and such income is reflected in the return of income furnished under section 139.
Clause (b) to section 115BBE(1) –
Total income of the assessee, determined by the Assessing Officer, includes any income referred to in sections 68 to 69D, if such income is not covered under clause (a).
Sub-section (2) of said section provides that no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any provision of the Act in computing his income referred to in clause (a) of sub-section (1).
In order to rationalize the provisions of section 115BBE, the said sub-section (2) has been amended (with effect from the assessment year 2017-18) so as to also include income referred to in clause (b) of sub-section (1).