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Unit 1: Income Tax: Basic Framework

any sum chargeable to income-tax under clause (iiib) of Section 28 i.e., cash assistance Notes
(by whatever name called), received or receivable by any person against exports
under any scheme of the Government of India;
any sum chargeable to income-tax under clause (iiic) of Section 28 i.e., any duty of
customs or excise re-paid or re-payable as drawback to any person against exports
under the Customs and Central Excise Duties Drawback Rules, 1971;
the value of any benefit or perquisite whether convertible into money or not; taxable
as income under Section 28(iv) in the case of person carrying on business or exercising
a profession;

any sum chargeable to income-tax under clause (v) of Section 28.
10. Capital Gain: Any capital gains chargeable to tax under Section 45; since the definition of
income in Section 2(24) is inclusive and not exhaustive capital gains chargeable under
Section 46(2) are also assessable as income.
11. Insurance Profit: The profits and gains of any business of insurance carried on by a mutual
insurance company or by a co-operative society computed in accordance with the
provisions of Section 44 or any surplus taken to be such profits and gains by virtue of the
profits contained in the First Schedule to the Income-tax Act.

12. Banking income of a Co-operative Society: The profits and gains of any business of banking
(including) providing credit facilities carried on by a cooperative society with its members.
13. Winnings from Lottery: any winnings from lotteries, crossword puzzles, races, including
horse-races, card-games and games of any sort or from gambling or betting of any form.
“lottery” includes winnings, from prizes awarded to any person by draw of lots or
by chance or in any other manner whatsoever, under any scheme or arrangement by
whatever name called;
“card game and other game of any sort” includes any game show, an entertainment
programme on television or electronic mode, in which people compete to win
prizes or any other similar game.

14. Employees Contribution towards Provident Fund: Any sum received by the assessee
from his employees as contributions to any provident fund or superannuation fund or any
fund set-up under the provisions of the Employees State Insurance Act, 1948 (34 of 1948) or
any other fund for the welfare of such employees.
15. Amount Received under Keyman Insurance Policy: Any sum received under a Keyman
Insurance Policy including the sum allocated by way of bonus on such policy. Keyman
Insurance Policy means a life insurance policy taken by a person on the life of another
person who is or was the employee of the first mentioned person or is or was connected
with the business of the first mentioned person in any manner whatsoever.

16. Amount Received for not Carrying out any Activity: Any sum referred to in Section
28(va), i.e. any sum, whether received or receivable in cash or kind, under an agreement
for:
not carrying out any activity in relation to any business; or
not sharing any know-how, patent, copyright, trade-mark, license, franchise or any
other business or commercial right of similar nature or information or technique
likely to assist in the manufacture or processing of goods or provision for services.
17. Gift received for an Amount Exceeding ` 50,000: Any sum of money or value of property
referred to in clause (vii) or clause (viia) of sub-section (2) of Section 56.

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