The Statutory Brief

IT Act 1961 → 2025 / Section 69B

Unexplained income

Section 69B → Section 103/104

Investments not fully recorded in books

Section 69B of the old Income-tax Act, 1961 · new section 103/104 under the Income-tax Act, 2025

New reference Sections 103 and 104

Income-tax Act, 1961Section 69B

  • Investment exceeding the amount recorded in books, without satisfactory explanation, is deemed income
  • Taxed at 60% plus 25% surcharge and cess under 115BBE (78% effective)
  • No set-off of losses against it

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Sections 103 and 104

  • Section 103: unexplained investment (unrecorded or excess over books)
  • 104: unexplained asset (unrecorded or in excess of books, incl. bullion, jewellery, VDA)
  • Tax at 30% under section 195 (old 115BBE at 60%; rate cut by Finance Act 2026)

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered, with a real rate change: Finance Act 2026 cut the section 195 rate from 60% to 30%, and omitted the separate 10% penalty (old 271AAC, new 443).

Practice notes

  • Penalty for under-reporting/misreporting (270A, now 439) can still apply.
  • 68, 69, 69A have their own page.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 69B in the new Income Tax Act?

Sections 103 and 104 of the Income-tax Act, 2025, taxed at 30% under section 195 (reduced from 60% by Finance Act 2026).

What changed in section 69B under the new Income Tax Act?

Renumbered, with a real rate change: Finance Act 2026 cut the section 195 rate from 60% to 30%, and omitted the separate 10% penalty (old 271AAC, new 443).

Is section 69B still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 69B of the 1961 Act. Section 103/104 of the 2025 Act applies from tax year 2026-27.

Related sections

68→102Unexplained cash credits in the books of account69C→105Unexplained expenditure115BBE→195Tax rate on unexplained income (cash credits, investments, money, expenditure)61–86→97–310Revocable transfers, liability for clubbed income, AOP member's share, unexplained investment/expenditure, hundi