Tax implication on certain credits in Banks Accounts

[PRIYAM KHAMBHATA]

Respected Sir

I want to ask to ask that in my client case, who is NRI and not filed Return of Income of AY 2024-25, therefore, he wants to file Updated return of income of AY 2024-25, I have gone through his NRO Bank Account for the year under consideration. I came to know that certain bank credits towards Loan taken from Friends, which he never pays subsequently, and other few credits, which he does not knows from whom such receipts credits in Bank.

Therefore, I will have to consider as income in respect of Loan taken from Friends, which he never pays and other few credits which he does not knows from whom such receipts credits in Bank as income of the nature of section 56(2)(x) under the head Income from other Sources.

Is this correct disclosure under the Income from other Sources in Updated ITR file of AY 2024-25.

Please guide me

AI Summary

Unidentified Bank Credits in NRO Account Trigger Tax Liability Under Section 56(2)(x) for Income Disclosure An NRI with an NRO bank account containing unexplained credits from unidentified sources and unpaid loans seeks guidance on tax treatment. Based on section 56(2)(x) of the Income Tax Act, these unsubstantiated bank credits should be disclosed as income under 'Income from Other Sources' in an updated income tax return for Assessment Year 2024-25, as no satisfactory explanation or documentation exists to justify their origin.