Section 115BBE → Section 120
Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D
Quick Answer
Section 115BBE of the Income Tax Act, 1961 (Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D) corresponds to Section 120 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115BBE
The starting point is Section 115BBE of the Income Tax Act, 1961 — tax on income referred to in section 68 or section 69 or section 69a or section 69b or section 69c or section 69d. Taxes unexplained cash credits, investments, and expenditures at a punitive flat rate of 60% (effectively 78% with surcharge and cess). No deductions or basic exemption limit allowed.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 115BBE is retained and renumbered as Section 120 of the Income-tax Act, 2025. Retained verbatim. The ultimate penal tax rate used by the investigation wing.
The transition impact on Section 115BBE is assessed as Critical. Destroys the economics of tax evasion and black money hoarding.
Sec 115BBE
Provision Summary
Taxes unexplained cash credits, investments, and expenditures at a punitive flat rate of 60% (effectively 78% with surcharge and cess). No deductions or basic exemption limit allowed.
Sec 120
Provision Summary
Retained verbatim. The ultimate penal tax rate used by the investigation wing.
Key Changes & Highlights
- Explicitly denies set-off of any loss against such unexplained income.
Related Sections
Frequently Asked Questions
Which subject does Section 115BBE of the 1961 Act cover?
Section 115BBE of the Income Tax Act, 1961 covers tax on income referred to in section 68 or section 69 or section 69a or section 69b or section 69c or section 69d. Taxes unexplained cash credits, investments, and expenditures at a punitive flat rate of 60% (effectively 78% with surcharge and cess). No deductions or basic exemption limit allowed.
What is the new section number for Section 115BBE under the Income-tax Act, 2025?
Section 115BBE of the Income Tax Act, 1961 maps to Section 120 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim. The ultimate penal tax rate used by the investigation wing.
How does the Income-tax Act, 2025 affect Section 115BBE in practice?
The transition impact for Section 115BBE is rated Critical. Destroys the economics of tax evasion and black money hoarding.
What is new about Section 115BBE under the Income-tax Act, 2025?
Explicitly denies set-off of any loss against such unexplained income. These points are specific to Section 115BBE (Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D).
Disclaimer: This mapping of Section 115BBE (Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D) to Section 120 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115BBE is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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