LatestIncome Tax 3 July 2026
Income Tax Ruling
The ITAT has ruled that mere suspicion over the source of income cannot justify addition under section 68, and allowed foreign tax credit of Rs 13.91 lakh for income earned outside India, even if students study abroad, as long as the income is properly declared and taxed.
The ITAT has made a significant ruling regarding the source of income. *Key points* of the ruling include:
- Mere suspicion over the source of income is not enough to justify addition under section 68.
- Foreign tax credit can be allowed for income earned outside India.
The ruling is expected to have a significant impact on individuals with foreign income, particularly students studying abroad.
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