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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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
What does Section 115BBE of the Income Tax Act 1961 deal with?
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) 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 Direct Tax Code 2025?
Section 115BBE of the ITA 1961 maps to Section 120 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115BBE under the new tax code?
Section 115BBE is marked as "Retained" with status "Active". Impact: Critical - Destroys the economics of tax evasion and black money hoarding.
What are the key changes to Section 115BBE under DTC 2025?
Explicitly denies set-off of any loss against such unexplained income.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 115BBE?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?