Section 68: A Colonial Hangover in Tax Law

Section 68 of the Income-tax Act, 1961, which deals with unexplained cash credits in a person's bank account, still has a provision that dates back to the British era. The section makes it obligatory for the assessing officer to reject a return of income if a cash credit of Rs. 1 lakh or more is not adequately explained. But here's the thing - this limit hasn't been increased since the section was introduced in 1961. Imagine someone depositing 1 lakh cash in their SBI account back then - it was a huge deal, but in today's economy, it barely covers a month's rent in a metro city. It's absurd to expect people to explain their financial transactions from years ago, especially when digital payment systems and bank transactions have made it easier to track expenses.

This provision is a relic of a bygone era and needs to be updated to reflect changing financial realities.