COMPUTATION OF TOTAL INCOME - Income Tax Bill, 2025

Chapter: IV
COMPUTATION OF TOTAL INCOME
Part: A
Heads of income
Clause 13	:	Heads of income. Clause 13 of the Bill provides for classification under various heads of income for the purposes of charge of income-tax and ....
Clause 14	:	Income not forming part of total income and expenditure in relation to such income. Clause 14 of the Bill provides for disallowance of certain expenditure incurred in relation to income which does not form par....
Part: B
Salaries
Clause 15	:	Salaries. Clause 15 of the Bill provides for under the head salaries.....
Clause 16	:	Income from salary. Clause 16 of the Bill provides for different payments made by an employer to an employee which may be taxed under this head o....
Clause 17	:	Perquisite. Clause 17 of the Bill provides for exclusion of certain benefits from the definition of perquisites.....
Clause 18	:	Profits in lieu of salary. Clause 18 of the Bill seeks to define different payments in the nature of profits in lieu of salary and also seeks to specify....
Clause 19	:	Deductions from salaries Clause 19 of the Bill provides for deductions available against salary income. It also seeks to provide for calculation of th....
Part: C
Income from house property
Clause 20	:	Income from house property Clause 20 of the Bill provides for the charge of income-tax under the head Income from house property on the annual value of ....
Clause 21	:	Determination of annual value. Clause 21 of the Bill provides for determination of annual value and also seeks to define the annual value of property.....
Clause 22	:	Deductions from income from house property. Clause 22 of the Bill provides for deductions from income from house property.....
Clause 23	:	Arrears of rent and unrealised rent received subsequently. Clause 23 of the Bill provides for taxability of arrears or unrealised rent received subsequently irrespective of ownership o....
Clause 24	:	Property owned by co-owners. Clause 24 of the Bill provides for taxability of co-owners of the property with definite and ascertainable shares.....
Clause 25	:	Interpretation Clause 25 of the Bill provides for interpretation relating to Chapter IV-C and definition of an owner in relation to a proper....
Part: D
Profits and gains of business or profession
Clause 26	:	Income under head “Profits and gains of business or profession” Clause 26 of the Bill seeks to provide charging of income-tax on income under the head Profits and gains of business or profe....
Clause 27	:	Manner of computing profits and gains of business or profession. Clause 27 of the Bill provides for the manner of computing income under the head Profits and gains of business or profession ....
Clause 28	:	Rent, rates, taxes, repairs and insurance. Clause 28 of the Bill provides for deduction for expenses on account of rent, repairs, insurance premium, local taxes, etc.....
Clause 29	:	Deductions related to employee welfare. Clause 29 of the Bill seeks to provide the deduction related to employee welfare including contribution to various funds, etc....
Clause 30	:	Deduction on certain premium. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 31	:	Deduction for bad debt and provision for bad and doubtful debt. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 32	:	Other deductions. Clauses 30 to 32 of the Bill provides for deduction on expenditure incurred towards insurance premium relating to destruction....
Clause 33	:	Deduction for depreciation. Clause 33 of the Bill provides for deduction in respect of tangible and intangible assets owned and used for the purposes of ....
Clause 34	:	General conditions for allowable deductions. Clause 34 of the Bill provides for general conditions for allowing expenditure (other than capital and personal expenditure) ....
Clause 35	:	Amounts not deductible in certain circumstances. Clauses 35 and 36 of the Bill provides for amounts not to be allowed while computing the income under the head Profit and gai....
Clause 36	:	Expenses or payments not deductible in certain circmstances. Clauses 35 and 36 of the Bill provides for amounts not to be allowed while computing the income under the head Profit and gai....
Clause 37	:	Certain deductions allowed on actual payment basis only. Clause 37 of the Bill provides for certain deductions allowed on certain expenditures which is to be made only on actual paym....
Clause 38	:	Certain sums deemed as profits and gains of business or profession. Clause 38 of the Bill provides for certain sums that are liable to be deemed as profit and gains of business or profession wh....
Clause 39	:	Computation of actual cost. Clause 39 of the Bill provides for certain definitions such as actual cost, written down value, speculative transactions, etc....
Clause 40	:	Special provision for computation of cost of acquisition of certain assets. Clause 40 of the Bill provides for special provision for computation of cost of acquisition of certain assets.....
Clause 41	:	Written down value of depreciable asset. Clause 41 of the Bill provides for written down value of depreciable asset and, inter alia, provides certain definitions such....
Clause 42	:	Capitalising the impact of foreign exchange fluctuation. Clauses 42 and 43 of the Bill provide for capitalising the impact of foreign exchange fluctuation and taxation of foreign exc....
Clause 43	:	Taxation of foreign exchange fluctuation. Clauses 42 and 43 of the Bill provide for capitalising the impact of foreign exchange fluctuation and taxation of foreign exc....
Clause 44	:	Amortisation of certain preliminary expenses. Clause 44 of the Bill provides for amortisation of certain preliminary expenses insured by specified businesses before commen....
Clause 45	:	Expenditure on scientific research. Clause 45 of the Bill provides for deduction of certain capital expenditure (other than cost of land) or revenue expenditure ....
Clause 46	:	Capital expenditure of specified business. Clause 46 of the Bill provides for deduction of certain capital expenditure of specified business incurred subject to fulfilm....
Clause 47	:	Expenditure on agricultural extension project and skill development project. Clause 47 of the Bill provides for deduction of expenses incurred for agricultural extension projects and skill development p....
Clause 48	:	Tea development account, coffee development account and rubber development account. Clauses 48 and 49 of the Bill provide for tea development account, coffee development account and rubber development account ....
Clause 49	:	Site Restoration Fund. Clauses 48 and 49 of the Bill provide for tea development account, coffee development account and rubber development account ....
Clause 50	:	Special provision in case of trade, profession or similar association. Clause 50 of the Bill provides for deduction in the case of specified associations for the interest and welfare of members of....
Clause 51	:	Amortisation of expenditure for prospecting certain minerals. Clause 51 of the Bill provides for amortisation of expenditure for prospecting certain minerals.....
Clause 52	:	Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc. Clause 52 of the Bill provides for amortisation of expenditure for telecommunications services, amalgamation, demerger, schem....
Clause 53	:	Full value of consideration for transfer of assets other than capital assets in certain cases. Clause 53 of the Bill provides for full value of consideration for transfer of assets other than capital assets in certain ca....
Clause 54	:	Business of prospecting for mineral oils. Clause 54 of the Bill provides for deduction of certain capital expenditure expenses incurred in business of prospecting for ....
Clause 55	:	Insurance business. Clause 55 of the Bill provides for the manner of computation of profits or gains in cases of insurance business.....
Clause 56	:	Special provision in case of interest income of specified financial institutions. Clause 56 of the Bill provides for computation of interest income of specified financial institutions.....
Clause 57	:	Revenue recognition for construction and service contracts. Clause 57 of the Bill provides for revenue recognition for construction and service contracts.....
Clause 58	:	Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents. Clause 58 of the Bill provides for special provision for computing profits and gains of business of profession on presumptive....
Clause 59	:	Chargeability of royalty and fee for technical services in hands of nonresidents. Clause 59 of the Bill provides for chargeability of royalty and fee for technical services in hands of non-residents.....
Clause 60	:	Deduction of head office expenditure in case of non-residents. Clause 60 of the Bill seeks to provide the manner for computation for allowing the deduction of head office expenditure in ca....
Clause 61	:	Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents. Clause 61 of the Bill provides for special provision for computation of income on presumptive basis in respect of certain bus....
Clause 62	:	Maintenance of books of account. Clause 62 of the Bill provides for maintenance of books of accounts and seeks to deal with maintenance of books of account.....
Clause 63	:	Tax audit. Clause 63 of the Bill provides for tax audit and also provides for auditing of books account by specified accountant under ce....
Clause 64	:	Facilitating payments in electronic modes. Clause 64 of the Bill provides for facilitating payments in electronic modes.....
Clause 65	:	Special provision for computing deductions in case of business reorganisation of co-operative banks. Clause 65 of the Bill provides for special provision for computing deductions in case of business reorganisation of co-operat....
Clause 66	:	Interpretation. Clause 66 of the Bill provides for interpretation of Chapter IV-D which deals with various definitions related to income unde....
Part: E
Capital gains
Clause 67	:	Capital gains. Clause 67 of the Bill provides for capital gains and also seeks to provide the chargeability of Income-tax under the head Cap....
Clause 68	:	Capital gains on distribution of assets by companies in liquidation. Clause 68 of the Bill provides for capital gains on distribution of assets by companies in liquidation.....
Clause 69	:	Capital gains on purchase by company of its own shares or other specified securities. Clause 69 of the Bill provides for capital gains arising to shareholders or holders of specified securities, when a company p....
Clause 70	:	Transactions not regarded as transfer. Clause 70 of the Bill provides for delineation all the transactions which will not be regarded as transfer of capital asset f....
Clause 71	:	Withdrawal of exemption in certain cases. Clause 71 of the Bill provides for conditions wherein exemption from taxation as capital gains are withdrawn.....
Clause 72	:	Mode of computation of capital gains. Clause 72 of the Bill provides for mode of computation of capital gains.....
Clause 73	:	Cost with reference to certain modes of acquisition. Clause 73 of the Bill provides for the cost of acquisition of the asset with reference to certain modes of acquisition.....
Clause 74	:	Special provision for computation of capital gains in case of depreciable assets. Clause 74 of the Bill provides for special provision for computation of capital gains in case of depreciable assets. The said....
Clause 75	:	Special provision for cost of acquisition in case of depreciable asset. Clause 75 of the Bill provides for computation of capital gains with respect to assets that are depreciable, as well as the p....
Clause 76	:	Special provision for computation of capital gains in case of Market Linked Debenture. Clause 76 of the Bill provides for special provision for computation of capital gains in case of Market Linked Debenture.....
Clause 77	:	Special provision for computation of capital gains in case of slump sale. Clause 77 of the Bill provides for the computation of capital gains in the scenario of a slump sale of a capital asset.....
Clause 78	:	Special provision for full value of consideration in certain cases. Clauses 78 and 79 of the Bill provide for special provision for full value of consideration in certain cases and special prov....
Clause 79	:	Special provision for full value of consideration for transfer of share other than quoted share. Clauses 78 and 79 of the Bill provide for special provision for full value of consideration in certain cases and special prov....
Clause 80	:	Fair market value deemed to be full value of consideration in certain cases. Clause 80 of the Bill provides for the fair market value shall be deemed to the full value of consideration as a result of tr....
Clause 81	:	Advance money received. Clause 81 of the Bill provides for advance money received regarding the transfer of a capital asset.....
Clause 82	:	Profit on sale of property used for residence. Clause 82 of the Bill provides for the capital gains arising from profits on sale of residential properties.....
Clause 83	:	Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases. Clause 83 of the Bill provides for capital gains on transfer of land used for agricultural purposes not to be charged in cert....
Clause 84	:	Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases. Clause 84 of the Bill provides for capital gains on compulsory acquisition of lands and buildings not to be charged in certai....
Clause 85	:	Capital gains not to be charged on investment in certain bonds. Clause 85 of the Bill provides for capital gains not to be charged on investment in certain specific bonds.....
Clause 86	:	Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house. Clause 86 of the Bill provides for non-chargeability of capital gains in specific scenarios of investment in residential hous....
Clause 87	:	Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area. Clauses 87 and 88 of the Bill provide for exemption of capital gains on transfer of assets in cases of shifting of industrial....
Clause 88	:	Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone. Clauses 87 and 88 of the Bill provide for exemption of capital gains on transfer of assets in cases of shifting of industrial....
Clause 89	:	Extension of time for acquiring new asset or depositing or investing amount of capital gains. Clause 89 of the Bill provides for scenarios for extension of time for acquiring new assets or depositing or investing amount....
Clause 90	:	Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”. Clause 90 of the Bill provides for meaning of adjusted , cost of improvement and cost of acquisition and also seeks to deline....
Clause 91	:	Reference to Valuation Officer. Clause 91 of the Bill provides for reference to Valuation Officer for ascertaining the fair market value of a capital asset.....
Part: F
Income from other sources
Clause 92	:	Income from other sources. Clause 92 of the Bill provides for a non-exhaustive list of the incomes which are chargeable to tax under the head Income fro....
Clause 93	:	Deductions Clause 93 of the Bill provides for deductions for eligible expenses for computing the taxable income under the head Income fr....
Clause 94	:	Amounts not deductible. Clause 94 of the Bill seeks to enumerate the deductions that are allowable to be set off against incomes referred to in claus....
Clause 95	:	Profits chargeable to tax. Clause 95 of the Bill seeks to propose that any benefit in cash or otherwise obtained on account of remission or cessation of....