It assessess all receipts and payments transaction through on bank online mode all transactions after at the end of finical year rs:7 lacs bank account closing balance.
Question:
Assessess tax pay on rs:7 lacs bank account closing balance applicable in it act.
No. The ₹7 lakh closing bank balance itself is not taxable merely because it is lying in the bank account. Tax is payable on the income earned, not on the closing balance.The ₹7 lakh should, however, be properly reflected in the books/balance sheet, and the assessee should be able to explain the source of the balance. If any part represents unexplained money/credits/ tomb of the mask, it may be taxable under the applicable provisions. Therefore: ₹7 lakh closing balance ≠ automatically taxable income.
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