Income Meaning Under Income Tax Act

Where a return of income has not been furnished by the assessee and on the basis of information or document received from the prescribed income tax authority under section 1 33c 2 it is noticed by the assessing officer that the income of the assessee exceeds the maximum amount not chargeable to tax.

Income meaning under income tax act. Rental income from properties owned by a person other than those which are occupied by him are charged as income from house property. 2 dividends the definition of dividend has been given in sec. Any commission as a fixed percentage of turnover or overtime payment paid or payable by an employer to employee will be taxable under the head salary as it is forming part of the definition as defined under income tax act. There are various important case laws on interpretation of the term income which also needs to be reviewed.

Income for salary include wages pension annuity gratuity fees commission profits leave encashment annual accretion and transferred balance in recognised provident fund pf and contribution to employees pension account. Individual means natural person you and me i e. 20 march 2008 the definition of income under the income tax act is of an inclusive nature. Income includes profits or gains from business or profession including any benefit amenity perquisite obtained in.

As per income tax act 1961 section 2 7 an assessee is a person who is liable to pay the taxes under any provision of income tax act 1961. Assessee can also be a person with respect of whom any proceedings have been initiated or whose income has been assessed under the income tax act 1961 assessee is any person who is deemed assessee under any. Total income meaning jan 1 2020 income tax act 1961 kewal garg as per section 2 45 of income tax act 1961 unless the context otherwise requires the term total income means the total amount of income referred to in section 5 computed in the manner laid down in this act. Definition of person u s 2 31 of the income tax act 1961.

All human beings including minor and unsound mind. 2 24 of the income tax act. Ie apart from the items listed in the definition any receipt which satisfies the basic condition of being income is also to be treated as income and charged to income tax accordingly. In this act unless the context otherwise requires 1 advance tax means the advance tax payable in accordance with the provisions of chapter xvii c 1a agricultural income means a any rent or revenue derived from land which is situated in india and is used for agricultural purposes b any income derived from such land by.

Definition of income sec 2 24 of the income tax act 1961. Income tax is a charge on income so its important to understand the meaning of the term income under s. Gratuity and pension are retirement benefits provided by the employer to employee and are taxable under the head salary. 1 profits and gains this is one of the major sources of income and will be discussed in detail.