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Income
which comes in as the periodical product of
ones work, business, land, or investments
(commonly expressed in terms of money)
Oxford English Dictionary
Even though generally of a recurring character, Income may not
necessarily be recurring in nature.
Kamakshya Narain Singh of Ramgarh vs CIT (1943)
Under
Section
2 (24),
Income
includes
Exemption in the
case of Members of
Parliament
Exemption in the
case of Members of
State Legislature
Case -1
Daily Allowance
Entire Amount
Entire Amount
Case-2
Entire Amount
NA
Case-3
Constituency allowance
received by Members of
State Legislature
NA
Applications
BBMP, had earned an income attributed to sale of pesticides as follows: Rs
4,50,000 from Bangalore and Rs 2,30,000 from Pune. What is the taxable income
in this case?
Rs 2, 30, 000 is the taxable income as the income from supply of
commodity/services is exempt under a local authoritys own jurisdiction but
taxable (other than Water & Electricity) for outside its jurisdiction.
Out of the Rs 10,00,000 the Press Trust of India earned as income, it allocates Rs
4,00,000 for its operation of fielding correspondents and the rest as a
remuneration for its members. How much is it liable for exemption?
It is liable to be exempted for Rs 4,00,000 as the income allocated for sole
purpose of collection or distribution of news by a specified news agency is
Tax-Exempt.
Incidental expenses.
Application
X studying at a Private University receives a Government Scholarship of Rs
30, 000 and receives another educational scholarship of Rs 1,00,000 from a
non-governmental trust. His annual fees is Rs 1,00,000. How much is
taxable ?
Nil. Because Cost of Education takes within its ambit not only Tuition fees but all the
other incidental expenses incurred for acquiring education
References