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Income Tax Laws – I




                    Notes


                                     Notes  Entry 82 of List I to the Seventh Schedule of the Constitution of India confers power
                                     on Parliament to levy taxes on income other than agricultural income.
                                   As per section 2(24), the term ‘income’ means and includes:
                                   1.  Profits and gains;

                                   2.  Dividend;
                                   3.  Voluntary contributions: Voluntary contributions received by:
                                            a trust created wholly or partly for charitable or religious purposes
                                            a scientific research association; or

                                            a fund or trust or institution established for charitable purposes and notified under
                                            section 10(23C)(iv) or (v) or
                                            any university or other educational institution or by any hospital referred to in
                                            Section 10(23C)(iiad)(vi)(iiiae)(iva); or
                                            an electoral trust.
                                   4.  The value of any perquisite or profit in lieu of salary taxable.
                                   5.  Any special allowance or benefit specifically granted to the assessee to meet expenses
                                       wholly, necessarily and exclusively for the performance of the duties of an office or
                                       employment of profit.
                                   6.  City Compensatory Allowance or Dearness allowance: Any allowance granted to the
                                       assessee either to meet his personal expenses at the place where the duties of his office or
                                       employment of profit are ordinarily performed by him or at a place where he ordinarily
                                       resides or to compensate him for the increased cost of living.
                                   7.  Benefit or Perquisite to a Director: The value of any benefit or perquisite, whether
                                       convertible into money or not, obtained from a company by: (a) a director, or (b) a person
                                       having substantial interest in the company, or (c) a relative of the director or of the person
                                       having substantial interest, and any sum paid by any such company in respect of any
                                       obligation which, but for such payment, would have been payable by the director or other
                                       person aforesaid.
                                   8.  Any Benefit or perquisite to a Representative Assessee: The value of any benefit or perquisite
                                       (whether convertible into money or not) obtained by any representative assessee under
                                       Section 160(1)(iii)/(iv) or beneficiary, or any amount paid by the representative assessee
                                       in respect of any obligation which, but for such payment, would have been payable by the
                                       beneficiary.
                                   9.  Any sum chargeable under section 28, 41 and 59 like:

                                            any sum chargeable to tax as business income under Section 28(ii), any amount
                                            taxable in the hands of a trade, professional or similar association (for specific
                                            services performed for its members) as its income from business under Section
                                            28(iii), and deemed profits which are taxable under Sections 41 and 59 of the Act;

                                            any sum chargeable to income-tax under clause (iiia) of Section 28, i.e. profits on sale
                                            of a licence granted under the Imports (Control) Order, 1955, made under the Imports
                                            and Exports (Control) Act, 1947 [inserted by the Finance Act, 1990, with retrospective
                                            effect from 1.4.1962];




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