Unexplained Wealth Taxed as Income: 60% Tax, 25% Surcharge, and 10% Penalty u/ss 69A and 115BBE.

In cases where an individual possesses unexplained money, bullion, jewelry, or other valuables not recorded in their financial accounts, these may be considered as income under Section 69A of the Income Tax Act. Tax on such income is levied at 60% under Section 115BBE, with an additional 25% surcharge. No deductions or loss offsets are permitted. A penalty of 10% of the tax under Section 115BBE can be imposed by tax authorities unless the income is declared and taxed in the return filed under Section 139. If this penalty is applied, no further penalty under Section 270A is imposed.