As per the Finance Bill, 2012 on and from the financial year 2012- 2013 the unexplained amounts relating to cash credits or unexplained money and investments as also the unexplained expenses would now be taxed at the maximum marginal rate of income tax, namely 30% plus surcharge and cesses as applicable. It is also provided that no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of the Income Tax Act in computing the above items of deemed income. The benefit of the basic income tax exemption limit would not be available. |
