Income-tax Act 2025 · AGGREGATION OF INCOME

Section 101 · Total income.

101. In computing the total income of an assessee, there shall be included all income on which no income-tax is payable under Chapter XVII-A4.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 136

Section 102 · Unexplained credits.

102. (1) Where any sum is found credited in the books of an assessee maintained for any tax year, and—

(a) the assessee offers no explanation about the nature and source of such credit; or

(b) the explanation offered about the nature and source of such credit by assessee is not satisfactory in the opinion of the Assessing Officer, then, the sum so credited shall be charged to income-tax as income of the assessee of that tax year.

(2) For the purposes of sub-section (1), where the sum so credited consists of loan or borrowing or any such amount, by whatever name called, the explanation offered by such assessee shall be deemed to be not satisfactory, unless,—

(a) the person in whose name such credit is recorded in the books of such assessee also offers an explanation about the nature and source of such sum so credited; and

(b) such explanation in the opinion of the Assessing Officer has been found to be satisfactory.

(3) For the purposes of sub-section (1), where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount, by whatever name called, the explanation offered by such assessee company shall be deemed to be not satisfactory, unless—

(a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and

(b) such explanation, in the opinion of the Assessing Officer has been found to be satisfactory.

(4) Nothing contained in sub-section (2) or (3) shall apply if the person, in whose name the sum referred to in those sub-sections is recorded, is a venture capital fund or a venture capital company as referred to in Schedule V (Table: Sl. No. 6).

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 137

Section 103 · Unexplained investment.

103. Where in any tax year, any investment has been made by the assessee which is not recorded in the books of account, if any, maintained by such assessee for any source of income, or, the Assessing Officer finds that the amount of such investment exceeds the amount recorded in such books of account and—

(a) the assessee offers no explanation about the nature and source of such investment, or such excess amount, as the case may be; or

(b) the explanation offered about the nature and source of such investment by the assessee, is not satisfactory in the opinion of the Assessing Officer, then, the value of such investment, or such excess amount, as the case may be, shall be deemed to be the income of the assessee of that tax year.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 138

Section 104 · Unexplained asset.

104. (1) Where in any tax year, any asset has been found to be owned by or belonging to the assessee which is not recorded in the books of account, if any, maintained by such assessee for any source of income, or the Assessing Officer finds that the amount expended in acquiring such asset exceeds the amount recorded in such books of account and—

(a) the assessee offers no explanation about the nature and source of acquisition of such asset, or such excess amount, as the case may be; or

(b) the explanation offered about the nature and source of acquisition of such asset by the assessee, is not satisfactory in the opinion of the Assessing Officer, then, the value of such asset, or such excess amount, as the case may be, shall be deemed to be the income of the assessee of the tax year in which such asset has been found to be owned by, or belonging to, the assessee.

(2) For the purposes of this section, "asset" includes money, bullion, jewellery, virtual digital asset or other valuable article.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 139

Section 105 · Unexplained expenditure.

105. (1) Where any expenditure has been incurred by the assessee in any tax year, and—

(a) the assessee offers no explanation about the source of such expenditure or part thereof; or

(b) the explanation offered about the source of such expenditure by the assessee is not satisfactory in the opinion of the Assessing Officer, then, the amount covered by such expenditure or part thereof, shall be deemed to be the income of the assessee for that tax year.

(2) Irrespective of any other provision of this Act, the amount deemed as income in sub-section (1) shall not be allowed as a deduction under this Act.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 140

Section 106 · Amount borrowed or repaid through negotiable instrument, hundi, etc.

106. (1) Where any amount (including interest thereof) is borrowed or repaid through a negotiable instrument or on a hundi, otherwise than an account payee cheque, or through any mode as specified by the Board in this behalf, the amount so borrowed or repaid (including interest paid on the borrowed amount) shall be deemed to be the income of the person borrowing or repaying, as the case may be, for the tax year in which the amount was borrowed or repaid.

(2) Where the amount borrowed under sub-section (1) has been deemed to be the income of any person, such person shall not be liable to be assessed again in respect of such amount under that sub-section on repayment of such amount.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 141

Section 107 · Charge of tax.

107. Income referred to in sections 102, 103, 104, 105 and 106 shall be charged to tax as per the provisions of section 195.

Income-tax Act, 2025 — Income Tax Department print edition · 674-page print downloaded 25 August 2026; source heading states as amended by Finance Act, 2026 · Source PDF pages: 142