Budget 2012 Income Tax: Section 68 amended – Share application etc. treated as unexplained unless corroborated by the payer
Budget 2012 has inserted Provision to Section 68 the effect of which is that any share application, share capital or share premium received in a privately held company shall be treated as unexplained income u/s 68 unless the same is corroborated by the payer of such amount.
This was a long standing loophole which has been plugged by requiring confirmation by the payer of the amount and source of such investment. However, this will also cause hardship to the genuine assessee as they would be required to prove each and every investment in the company.
Dear Sir,
In a case when share capital was taken by account payee cheques before 1.4.2010 and the matter is being investigated now in search operations. Will the amended provisions of Sec 68 apply to this such a case?. The drafting of Sec. 68 seems to be procedural.
Kindly advice.
Avinash Mohan
Kanpur