| Question And Answer | |
|---|---|
| Subject: | Difference cash unexplained treatment f.y.24-25 |
| Category: | Income-Tax |
| Querist: | Kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | Unexplained cash credit, unexplained investment |
| Date: | March 20, 2025 |
Sir,
A Doctor cash on hand balance physical verification match to account Book records difference rs:8 lacs amount show f.y.24-25 as on dt:28-02-25
Question:
Assessess difference cash amount rs:8 lacs unexplained cash adjusted procedure f.y.24-25
If the physical cash balance exceeds the amount recorded in the books (here, a difference of Rs. 8 lakhs), it is considered “unexplained cash.” Tax authorities may treat this as unreported income unless it can be justified with proper documentation.
If the difference is due to a legitimate source (e.g., personal funds, a loan, or prior savings), provide supporting evidence such as bank statements, loan agreements, or a declaration of personal cash infusion.
If the cash is explainable, adjust the books by recording the appropriate entry (e.g., credit “Income” or “Capital” and debit “Cash”) with proper narration.
If it remains unexplained, the amount may need to be treated as “income from other sources” or “unexplained money” under Section 68 or 69A of the Income Tax Act, 1961.