INCOME [Sec. 2(24)]
Definition :
As per Sec. 2(24) of the Act the term ” Income” includes –
1) Profits and gains
2) Dividends
3) Voluntary contributions received by a charitable or religious trust or a specified
institution (e.g. a scientific research association, a sport association, a notified
charitable or public religious trust), or by an electoral trust.
4) Perquisites, profits in lieu of salary or any special allowance or benefit
specifically granted to an employee to meet expenses for the performances of his
duties (e.g. Entertainment Allowance) taxable under the head ’Income from Salaries’.
5) Allowance to an employee to meet his personal expenses at office, or to compensate
him for the increased cost of living (e.g. Dearness Allowance)
6) Benefit or perquisite obtained from a company by a director or a person having
substantial interest in the company or their relatives
7) Benefit or perquisite obtained by a representative assessee (eg. trustee), or a
beneficiary, or any amount paid by the representative assessee for the benefit of
beneficiary.
8) Any sum chargeable –
a) Under Sec. 28 (ii) & (iii) of the Act (compensation for termination of a contract
for directorship or agency; income from services to members earned by a trade
association etc.); or
b) Under Sec. 41 (amounts chargeable to tax as income from business e.g.
recovery of bad debts, sale of scientific research assets etc.) or
c) Under Sec. 59 (amounts chargeable to tax as income from other sources e.g.
recovery of expenses claimed earlier).
9) Profits on sale of an import licence, taxable u/s 28 (iiia).
10) Export cash assistance received from Government, taxable u/s 28 (iiib)
11) Refund of customs or excise duty received against exports, taxable u/s 28 (iiic).
12) Benefit or perquisite from business or profession (e.g. a gift received by a doctor
from a patient), taxable u/s 28(iv).
13) Any interest, salary, bonus, commission or remuneration due to or received by a partner
from a firm, to the extent allowed to be deducted under Sec. 40(b), taxable u/s 28(v).
14) Capital gains chargeable under Sec. 45 of the Act.
15) Profit of any business of Insurance carried on by a mutual insurance company or a
co-operative society, taxable u/s 44 or the First Schedule to the Act.
16) Winnings from lotteries, prizes by draw of lots or by chance, crossword puzzles,
races including horse races, card games, game show, entertainment programme on
television in which people compete to win prizes, gambling or betting.
17) Contribution from employees to Provident Fund, or superannuation Fund, or
Employees Insurance Fund etc, deducted by the employer from the salaries of the
employees.
18) Any sum received under a Keyman Insurance Policy (i.e. a policy taken on a key
person) including bonus on such policy.
19) Any sum referred to u/s 28 (va) (i.e. non-compete compensation etc.)
20) Aggregate amount exceeding ` 50,000 received by an individual or HUF, from any
person / persons without consideration , subject to certain exceptions.
21) Gifts or deemed gifts exceeding ` 50,000/-, received by an individual or HUF, subject
to certain exceptions.
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