Full formBanking & Finance
UDVstands forUnexplained Deposit Value
Full Form of UDV
What is UDV?
Unexplained Deposit Value, commonly abbreviated as UDV, is a critical term used in the Indian income tax framework to denote the total amount of credits or deposits found in a taxpayer's bank account that the assessee fails to explain with satisfactory evidence regarding the source of funds. When the Income Tax Department conducts scrutiny or assessment and discovers cash deposits, cheque entries, or electronic transfers that do not match the declared income or known sources, the aggregate of such unaccounted entries is termed the UDV. Under Section 68 and Section 69 of the Income Tax Act, 1961, this unexplained amount is treated as the assessee's income for that particular financial year and is added back to the total taxable income, often attracting a flat thirty percent tax plus applicable surcharge and cess. UDV assessments are particularly common during demonetisation-related investigations, post-return scrutiny, and search operations conducted by the department. The concept holds strong relevance for aspirants preparing for chartered accountancy, company secretary, income tax officer, and other competitive finance examinations in India.
UDV का फुल फॉर्म
अव्याख्यायित जमा मूल्य
Example
After the survey, the assessing officer issued a notice to the trader citing an Unexplained Deposit Value of Rs 45 lakh in his savings account during the financial year.
UDV — frequently asked questions
What is the full form of UDV?
UDV stands for Unexplained Deposit Value, a term used in Indian income tax assessments to refer to deposits in bank accounts that the taxpayer cannot adequately explain.
Under which section of the Income Tax Act is UDV covered?
Unexplained Deposit Value is primarily covered under Section 68 and Section 69 of the Income Tax Act, 1961, where such unaccounted credits are added to the assessee's taxable income.
How is Unexplained Deposit Value taxed in India?
The UDV is added to the taxpayer's total income and taxed at a flat rate of thirty percent along with applicable surcharge and cess, making it one of the harsher provisions in direct taxation.