Section 271AAC → Section 345
Penalty in respect of certain income (Unexplained Money)
Quick Answer
Section 271AAC of the Income Tax Act, 1961 (Penalty in respect of certain income (Unexplained Money)) corresponds to Section 345 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 271AAC
Provision Summary
Penalty @ 10% on tax calculated under 115BBE for unexplained cash, stock, or investments.
Sec 345
Provision Summary
Retained. If income is determined under 68/69/69A etc., the total effective tax + penalty rate reaches ~78%.
Key Changes & Highlights
- Strictly enforced; no discretion given to the AO to waive this penalty.
Related Sections
Frequently Asked Questions
What does Section 271AAC of the Income Tax Act 1961 deal with?
Section 271AAC (Penalty in respect of certain income (Unexplained Money)) Penalty @ 10% on tax calculated under 115BBE for unexplained cash, stock, or investments.
What is the new section number for Section 271AAC under the Direct Tax Code 2025?
Section 271AAC of the ITA 1961 maps to Section 345 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 271AAC under the new tax code?
Section 271AAC is marked as "Retained" with status "Active". Impact: Very High - Extremely punitive for unexplained wealth.
What are the key changes to Section 271AAC under DTC 2025?
Strictly enforced; no discretion given to the AO to waive this penalty.
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.
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