LawPaws007

 Head of Income: Profits and Gain of Business and Profession Section 23 is called Profits and Gains of Business and Profession.           The following incomes shall be chargeable to income tax under "Profits and Gains of Business or Professions": Profits and gains of any business or profession Any compensation or other payment due to received by any person specified in Section 28(ii) Income of Trade or Professional Association Profit on sale of import license Cash assistance received or receivable against export Duty drawback of customers and central excise duty The value of any benefit or prerequisite received by a person either in connection with his business activities or in the course of his professional services Any interest salary, commission,, bonus or remuneration  received by a partner from firm Any sum received for not carrying out any activity in  relation to any business or not to share any know-how, patent, trademark, copyright, etc. Any sum, including bonus, re

 Salary under Income Tax Act Basis of Charge Salary is taxable on due or receipt basis whichever is earlier as per Section 15. Computation of income under the head "Salaries" Salary                                                        xx Allowances                                           xx Prerequisites                                     xx                                                                        ____ Gross Salary                                     xxx Less: Deductions under Section 16                               xx Entertainment allowances deduction [Section 16(ii)]                               xx Professional tax [Section 16(iii)]                              xx Income under the head "Salaries"              _______ Note: Professional tax is deductible on a "payment basis". If it is paid by the employer on behalf of the employee, it is first included in gross salary as a prerequisite and then deduction available under Section 16(i

 Head of Income: Other Sources Though the other "Heads of Income" cover everything extensively, what if I won some lottery? Would it be taxable? What if I won in a casino or in a horse race? In order to avoid the tax evasion from the sources which form the part as a casual income, i.e. income earned by some kind of wagering contract would be included here. Or in other words, we can say, those which happened due to a ' matter of luck' involved in it would be covered here. This section is a residuary section which covers the miscellaneous provisions related to taxation. It would be a surprise for the novice, that even the gift received which is above the 50000/- limit would also be taxable!  However, certain relations are exempted (in case the gift is received during the marriage of an individual). However, here the twist comes, and that is #cousins are not involved in this list! Although, even by reading this much the income tax act may seem like havoc, trust me it isn