Section-103: Unexplained investment

Section-103 : Unexplained investment

Section-103 provides for unexplained investment. It also seeks to provide the circumstances or conditions in which any investment made by the assessee shall be deemed as unexplained investment and be included in the total income of the assessee. Learn to understand the section-103 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-103 as per act

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, or, the Assessing Officer finds that the amount of such investment exceeds the amount recorded in such books of account where the investment is found recorded, and the assessee––

offers no explanation about the nature and source of such investment, or such excess amount, as the case may be; or
the explanation offered 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.