Madras HC rules 60% Tax Rate for Demonetization Deposits u/s 115BBE applies Prospectively from 01.04.2017, Orders 30% Tax Reassessment

The Madras High Court ruled that a 60% tax rate under section 115BBE of the Income Tax Act applies to demonetization deposits prospectively from April 1, 2017. The case involved the taxation of income from deposits made during the demonetization period in 2016. The court clarified that the higher tax rate of 60% on unexplained income applies to deposits made after the law came into effect in 2017, and not to deposits made during the demonetization period itself. This decision provides clarity on the retrospective application of tax rates and the treatment of demonetization-related deposits.