Examine the correctness of the following statements in the context of provisions contained in the Income-tax Act, 1961 relevant for the previous year 2018-19: The additions to income made by invoking the provisions of se

The statement is incorrect. Tax rate for Unexplained Cash Credit: Section 115BBE inserted by the Finance Act, 2012 of the Income Tax Act, 1961 and substituted by the Taxation Laws (second amendment) Act, 2016 is mainly to curb the practice of laundering of unaccounted money. This section for the purpose of taxation, besides others also includes the unexplained credits as specified in section 68 of the Income-tax Act, 1961. Section further imposes a condition that no deduction in respect of any expenditure for allowance or set off of any loss shall be allowed under any provisions of the Act in computing such deemed income. The tax at the rate of 60% plus 25% surcharge and 4% health and education cess be charged in case of Unexplained Cash credit.