Computation of Total Income Under Various Heads
Abstract
The article “Computation of total income under various heads” delves into the intricate process of calculating total income and provides a detailed exploration of the complex process involved in calculating total income under different categories specified in the Income Tax Act, 1961. It meticulously examines the distinct categories of income, including salary, house property, business profits, capital gains, and income from other sources, offering readers a comprehensive understanding of taxation rules, exemptions, deductions, and compliance requirements associated with each category and exploring these components. This article provides a comprehensive overview of taxation rules, exemptions, and deductions. By dissecting each income head, the article empowers readers to navigate the complexities of income computation, ensuring accurate reporting and compliance with tax regulations. Furthermore, this article not only equips readers with the knowledge needed to foster compliance with tax regulations but also a pathway towards informed financial decision-making.
References
Income Tax Act, 1961, Section 10(14): Exemptions related to allowances.
Income Tax Act, 1961, Section 23: Computation of income from house property.
Income Tax Act, 1961, Section 28: Profits and gains of business or profession.
Income Tax Act, 1961, Section 45: Capital gains.
Income Tax Act, 1961, Section 56: Income from other sources.
Income Tax Act, 1961, Section 271: Penalties for defaults in furnishing returns, etc.
Income Tax Act, 1961, Section 143: Assessment.
Income Tax Act, 1961, Section 276C: Willful attempt to evade tax.
Income Tax Act, 1961, Section 281B: Provisional attachment to protect revenue in certain cases.
