• Deemed Income means Income which is actually not earned or
received by Assesse but Income Tax Act consider such as Income deemed to be received in India. • Deemed income is income that is based on a rate of return that’s assumed for an investment even when that rate isn’t what the investment actually returns. • When applying for the Age Pension, you must satisfy an Age Pension assets test and an Age Pension income test. If you own financial assets, such as listed shares or a superannuation pension, then the income counted for the Age Pension income test, is not the actual income you earn, or pension payments you receive, but a deemed amount, using an assumed rate of return. • In other words, financial assets owned by an Age Pensioner, or potential Age Pensioner, are subject to the deeming rules, which means the financial assets will have deemed income assessed, rather than actual income earned. As per Sec 68 of Income Tax Act where any amount credited in the books of accounts of Asseessee for any previous years and Asseessee unable justify such transactions with proper explanation to assessing officer shall be deemed be Income of Asseessee under Head Income from Other Sources in Current Financial Year. If Assessee had recorded any purchase made by Asseessee on credit in books of accounts of any previous years fails to prove identity of Creditor than such credit purchase shall be deemed to be Income of Asseessee under Head Income from Other Sources in Current Financial Year. As per sec 68 of Income Tax Act where any Company other than Company in which Public is Interested credit any sum of money against Share Application Money or Share Capital or Securities Premium or any other etc. And company fails to satisfy the assessing officer that any amount credited to asseessee is resident of India and source of fund from such shares purchase than sum Credited shall be deemed to be Income of Asseessee in whose Account money is credited under Head Income from Other Sources in Current Financial Year. Deemed Income for Having Possession of Unexplained Source of Money As per sec 69A of Income Tax Act if Asseessee found owner of Any Money, jewellery, bullion or any other valuable article which is not recorded in the books of Accounts of Asseessee and Asseessee fails to give proper explanation to assessing officer than such money, jewellery and bullion shall be deemed to be Income of Asseessee under Head Income from Other Sources in such Year. As Per Sec 69B of Income Tax Act if Asseessee found the owner of Any Money, jewellery, bullion or any other valuable article which are recorded in the books of accounts but assessing officer reason to believe that amount recorded in the books of accounts is less than actual value and Asseessee fails to give proper explanation to assessing officer than such excess money shall be deemed to be Income of Asseessee under Head Income from Other Sources in such Financial Year. As Per sec 69 D of Income Tax Act if any Asseessee borrowed any amount of on Hundi and repaid such money including Interest their on otherwise than thorough Account Payee Cheque or Electronic Transfer Shall be deemed to be Income of Asseessee under Head Income from Other Sources in such Financial Year. If any borrowed on Hundi is included in the Income of Asseessee under Head Income from Other Sources at the Time of borrowing shall be included in the Income of Asseessee under Head Income from Other Sources on Repayment of Borrowing. Sec 69D of Income Tax Act shall not be applicable on Darshani Hundi Transaction.