TaxTMI 
TaxTMI 
Comparison of Section 103 "Unexplained investments." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)
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....or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause 103 of the Income Tax Bill, 2025. Context: a deeming provision aimed at aggregation of income by treating certain unexplained investments as income of the tax year in which the investment is made. Coverage: investments made by an assessee that are not recorded in books of account (if any) maintained by the assessee, or where the Assessing Officer finds the amount exceeds amounts recorded in such books. Definitions or explanations: Not stated in the document beyond the operative provision; there are no defined terms or further explanations provided in the text. Statutory Provision Mode Text & Scope The provision applies in any tax year in which an a....
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.... criminality. Exceptions/Provisos No explicit exceptions, provisos, thresholds, or carve-outs are present in the text. The only limiting textual element is the requirement of an explanation from the assessee and the AO's evaluation of its sufficiency. Specific exceptions (e.g., investments recorded in books with corroborative documentary evidence, or bona fide gifts, inheritances, etc.) are Not stated in the document. Illustrations * Example 1: An assessee makes a fixed deposit during the tax year but the transaction does not appear in the books of account maintained by the assessee. If the assessee does not offer any explanation about the source, the value of that fixed deposit may be deemed income under Clause 103. (Details of ....
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....r a particular source are irrelevant. * Removal of qualifying phrase about recordings: The Bill (Old Version) contains the clause "where the investment is found recorded," qualifying the phrase "exceeds the amount recorded in such books of account." The Act version omits "where the investment is found recorded." * Practical impact: omission may broaden operation by not requiring that the investment be "found recorded" at the outset - instead, the Assessing Officer's finding that the amount of such investment exceeds that recorded in the books suffices. This can make it easier for the department to invoke the deeming provision without an initial prerequisite that the investment be found recorded in the books. Practical Implications ....