Last updated: 14 Oct 2026

Virtual Auditor

Section 68 Unexplained Cash Credit

Last updated: 14 Oct 2026

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Quick answer: This service provides expert advisory and representation for Section 68 Income Tax Act compliance, covering unexplained cash credits, share capital, and loans. It is intended for entities needing to prove identity, genuineness, and creditworthiness before tax authorities. The practice is led by a Fellow Chartered Accountant with 14+ Years (Since 2012) of experience.

Expert reply to Section 68 additions. Unexplained cash credits, share capital, loans. Identity, genuineness, creditworthiness. Appeal before CIT(A)/ITAT.

Our Approach

We combine deep regulatory expertise with AI-powered tools to deliver accurate, defensible, and timely results. Every engagement is led by CA V. Viswanathan, ensuring senior-level attention.

Contact Us

Chennai (HQ): G-131, Ground Floor, Phase 3, Spencer Plaza Mall, Anna Salai, Chennai. Phone: +91 99622 60333.

Bangalore: 7th Floor, Mahalakshmi Chambers, 29, MG Road, Bangalore. Phone: +91 95139 39333.

Mumbai: Workafella, AK Estate, SV Road, Goregaon West, Mumbai. Phone: +91 77000 89597.

Frequently Asked Questions

What is Section 68 of the Income Tax Act?
Where any sum is found credited in the books of an assessee and the assessee offers no explanation about its nature and source, or the explanation is not satisfactory, the sum is charged to income-tax as the assessee's income of that year. For share capital or premium in a closely held company, the source in the hands of the investor must also be explained.
What are the three tests for Section 68?
The specific requirements, documents, and procedures are detailed in the relevant regulatory provisions. Virtual Auditor provides comprehensive support including documentation, filing, representation, and follow-up. Our multi-credential team ensures nothing is missed across regulatory intersections.
Can the AO add share capital under Section 68?
This depends on the specific facts and regulatory framework applicable to your situation. Virtual Auditor provides case-specific advisory after understanding your circumstances. Call +91 99622 60333 for a preliminary assessment.
What documents prove creditworthiness?
Virtual Auditor provides expert advisory on this through our FCA + ACS + CFE + IBBI Registered Valuer practice. Contact us at +91 99622 60333 or visit virtualauditor.in for detailed guidance specific to your situation.
What happens if Section 68 addition is confirmed?
Non-compliance or delayed action typically results in penalties, interest, and potential prosecution under the relevant statute. Virtual Auditor helps you avoid these consequences through proactive compliance management. Contact +91 99622 60333 for urgent matters.
What is the burden of proof under Section 68?
The initial burden is on the assessee to prove the identity of the creditor, the creditor's creditworthiness and the genuineness of the transaction. Once credible evidence is produced, the burden shifts to the Assessing Officer to show why it is unsatisfactory; additions cannot rest on suspicion alone.
What does this income-tax notice require, and what should I submit?
First identify the notice: an intimation of adjustments after processing (section 143(1)), a scrutiny notice (section 143(2)) with questions under section 142(1), a reassessment notice (sections 148A and 148), or a demand or penalty notice (the Income-tax Act, 1961 for tax years up to 2025-26; the corresponding provisions of the Income-tax Act, 2025 from tax year 2026-27). Check the assessment year, the Document Identification Number, the date of service and the deadline. Then gather what is asked for, reconcile the department’s figures with your return and AIS, and reply on the e-filing portal, asking for an adjournment or a hearing where needed. Ignoring a notice can lead to a best-judgement assessment and penalties. We review the notice confidentially and prepare the reply and supporting schedule.

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Which laws govern this service? — Income tax

The statutory provisions this service is delivered under, linked to the official text:

Strategic Business & Compliance Insights

Frequently Asked Questions

What is Section 68 of the Income Tax Act?
Where any sum is found credited in the books of an assessee and the assessee offers no explanation about its nature and source, or the explanation is not satisfactory, the sum is charged to income-tax as the assessee's income of that year. For share capital or premium in a closely held company, the source in the hands of the investor must also be explained.
What are the three tests for Section 68?
The specific requirements, documents, and procedures are detailed in the relevant regulatory provisions. Virtual Auditor provides comprehensive support including documentation, filing, representation, and follow-up. Our multi-credential team ensures nothing is missed across regulatory intersections.
Can the AO add share capital under Section 68?
This depends on the specific facts and regulatory framework applicable to your situation. Virtual Auditor provides case-specific advisory after understanding your circumstances. Call +91 99622 60333 for a preliminary assessment.
What documents prove creditworthiness?
Virtual Auditor provides expert advisory on this through our FCA + ACS + CFE + IBBI Registered Valuer practice. Contact us at +91 99622 60333 or visit virtualauditor.in for detailed guidance specific to your situation.
What happens if Section 68 addition is confirmed?
Non-compliance or delayed action typically results in penalties, interest, and potential prosecution under the relevant statute. Virtual Auditor helps you avoid these consequences through proactive compliance management. Contact +91 99622 60333 for urgent matters.
What is the burden of proof under Section 68?
The initial burden is on the assessee to prove the identity of the creditor, the creditor's creditworthiness and the genuineness of the transaction. Once credible evidence is produced, the burden shifts to the Assessing Officer to show why it is unsatisfactory; additions cannot rest on suspicion alone.
What does this income-tax notice require, and what should I submit?
First identify the notice: an intimation of adjustments after processing (section 143(1)), a scrutiny notice (section 143(2)) with questions under section 142(1), a reassessment notice (sections 148A and 148), or a demand or penalty notice (the Income-tax Act, 1961 for tax years up to 2025-26; the corresponding provisions of the Income-tax Act, 2025 from tax year 2026-27). Check the assessment year, the Document Identification Number, the date of service and the deadline. Then gather what is asked for, reconcile the department’s figures with your return and AIS, and reply on the e-filing portal, asking for an adjournment or a hearing where needed. Ignoring a notice can lead to a best-judgement assessment and penalties. We review the notice confidentially and prepare the reply and supporting schedule.