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Income [Section-2(24)] : Defination under I.Tax


(i)         Profits and gains

(ii)        Dividend

(iii)       Voluntary Contributions received by a trust. Voluntary contributions received by a trust are included in the definition of income. As such contributions received by following types of trusts, funds, associations, bodies etc. are included in the income of such bodies.

            (a) Contributions received by a trust created wholly or partly for charitable or religious purposes.
            (b) Contributions received by a scientific research association.
            (c) Contributions received by a fund or institution set up for charitable purposes and notified u/s lO(23c)(iv)(v).
            (d) Contribution received by any university or other educational institution, hospital referred in section l0(23c).

(iv)       The value of any perquisite or profit in lieu of salary taxable under section 17(2)(3)

(v)        Any special allowance or benefit, other than perquisite included under sub-clause (iii), 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

(vi)       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

(vii)      Value of any benefit or amenity, whether convertible into money or not, obtained by a representative assessee or by any person on whose behalf such benefit is received by   representative assessee and sum paid by representative assessee in respect of any obligation which hut for such payment would have been payable by the person on whose behalf representative assessee has made such payments

(viia)    The profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members;

(viii)     The value of any benefits or perquisites, whether convertible into money or not, obtained from a company either by a director or by a person, who has a substantial interest in the company, or by a relative of a director of such person, and any sum paid by such company in respect of any obligation but for which, such payment would have been payable by the     director or other person aforesaid

(ix)       Any sum chargeable to income-tax under section 28(u) and (iii) or section 41 or section 59;

(x)        Any sum chargeable to tax u/s 28 (iiia)

(xi)       Any sum chargeable to tax u/s 28(iii b)

(xii)      Any sum chargeable to tax u/s 28 (iii c) , -

(xiii)     The value of any benefit or perquisite taxable under section 28 (iv)

(xiv)     Any capital gain taxable under section 45

(xv)      Any sum whether received or receivable in cash or in 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 of services

(xvi)     The profit and gains of any business of insurance carried on by a mutual insurance company or by a co-operative society, computed in accordance with section 44 or any surplus taken to be such profits and gains by virtue of provisions contained in the first schedule

(xvii)    Any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever

(xviii)   Any sum received by the assessee as his employers’ contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employee’s State Insurance Act, 1948 or any other fund for the welfare of’ such employees

(xix)     Any sum received under a key man insurance policy including the sum allocated by way of bonus on such policy

(xx)      Any sum received by an individual or HUF from any person during 2013-14

            A.         in cash or by issue of cheque ordraft or by any other mode or by way of credit

            B.         otherwise than by way of consideration for goods or services but does not include

(xxi)     An aggregate amount of gift or gifts received (whether in cash or in the form of property) exceeding ? 50,000 in a previous year by an individual or Hindu undivided family from non-relatives shall be treated as income which will be taxable in the hands of the recepient. (For details, please refer to chapter on Other Sources)

(xxii)    Gifts received by a firm or closely held company as provided in Section 56(2)(viia).

(xxiii)   Any consideration for issue of shares by a closely held company as exceeds the fair market value of shares as provided in Section 56(2)(viib) [w.e.f. Assessment year 2013-14].

The definition of term ‘Income’ as given above does not explain what income is ? It only tells that the above mentioned receipts are also included in the meaning of term income. The definition given u/s 2(24) is inclusive and not exhaustive. According to English dictionary, the term income means “periodical receipts from one ‘s business, land, work, investments etc.”

The term income simply means something which comes in. It is a periodical return with regularity or expected regularity. It’s nowhere mentioned that income refers to only monetary return. It includes value of benefits and perquisites. Any thing which can reasonably and properly be described as income is taxable under this Act unless specifically exempted under the various provisions of this Act. [Gopal Saran Narian Singh v. C.I.T. (1935) 3 I.T.R. 237, (PC)].

The term income includes not only what is received by using the property but also the amount saved by using it himself. Any thing which is convertible into income can be regarded as source of accrual of income.
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