Tax part 2

any sum received hyteasesce liom ha cmpluyces as con rizutions to any riot ident fim or supeia uztion find ora fud set up inda the provsios of the Iimplayces State lusurarce Act. 134 or aty cther fund tir the welte.re ot sutu cmployoc any sun received nde a Key-mar Iesu auc Policy u.tuuding thc sam locane bs way of Loinus on such palic (rrö) ary sur refenedt o in sevion 28I) (See Chapter any sum ieed to in ction 5612 gift of xonzy and pauperty essced y Esioo Sot spplicable w.e. he value of puperiy relerned lw in seerizo boleXtla Not applicable w.e.l. A.N. 2018-19); xv) wher a company, iou being a comnauy in which the rubli. are sub tart ally increste, roccives atuy prey ou: te considle raton reerived lur suca shares as uxveuds the tair maik at vaide t ice shures Section ycar, from any pe suu being a restdent, a nsidern iswe of shares t. xceeas the ee vatue of s x asan of money referred to in sction 5612jfihepte. S in the torm ef a sub idy cr ant 3i vash ince-tire r diy deawback T waivst w zoncession or rimhursc ent (oy whaiavei name callea) by the teriral Government State Gu body oragency in caslt u: kir to the asscscc othei than ta) the subeiey or gran: or mmburseneu which is nke irto accouu. kor determination uf th the subsidv or grant 3y the Central eernment for thhe purpose of the cn pus ot a tust uu in-titutien esuhlishc.a by tre Central Governmen r Statc Covernueit. us the case may hr, sha, also nzt par. il incoma xxi ay sey : value of proparly rterrd to in scctiou 56(2ux) See Chsglor si. (1B) Concept of Income: tiene-ally speaking, t word 'Income ewers reeeipts in t e sha su ol uey money's worth wluch ans: with certain eguarty oi espe d regularity from a cicfinite sourc How all re eips du ot form ths biis of tax: iun Ltde te A B-vadly, an analogy is drawn if tree and he huiis of e. The tze symbaiscs the sauree from which ene gets fruits whict symbz ise Incme Tho recesot arisirg foxt sale uf tree ise, thcrefore. corsidered a capitel rencipt which is net income; hut the teveipts flow g Lo LN suree viz fruits is income. On applicotion u? inis aialouy. it cau br sad that whil the coipt aaisuig Lut th sale of a house is no: incon the rcept arising tom dre realisation ofeat is icome In the same way, re:eipt fram the eale ol a machine ia not incomms hut from tlepnine hreught out from the machine is income. In thase cnaes, however, fzpersen drals in pu rhasc rnd snl ofhouse propeics on ina hines hess assets do not remain a srurcc and the profit crives fmm ativies of mchs and salr e mes incme The source nccd not n-cessäily b: tangible as the return Ier numan exeio: is also come I. The aborc is a broad generalisation. While a distinuction is gcnerally meticbe hr rarital rreint and reven c receipt, Es illustrsted abav the Acl as wideed the scope ot ineone by ersshy in-ding withir the meaning nf "Income, the rcecints which do not fil under ihe tvad coi-epl explaiued abova. For iistance, zne Act specitici.ly makes che pru it aisits frem the salr of certain cenital assets also subject to tix unde: et ain vireuistsces a hes C apital Gains. The winnings frum lotteries, crosswoni mes, rac:s, cErc games, ete wiieh do not arise ror any delinite source and do not bavc the element of regulaity bave also been specitically clerified to h Ineme inde- he Act 2. t is not hc gress receipts but only the ne. 1eis arEvee at after decncting the rlated expenzes incurredm cenneerion with eaning sach receipts, that are made the basis of laxation. 3. Same impor.ant prisciples which explhih the importanue of ine ue for incoms-ax purposc are givon h low ical moueary return coming m with some ser of reg arity o souice is not neccsserily oe whi exoced to be continuons expected icgularity from definite sources. The but it must be ore whse uuject is production ef a definite reln, eacluding anyhng in the nau ol a ete wincfall. does sot arise regul ly w.ll no: be reated es inceme for tax purpeses e g wnrings from loraries, etc. i lorm of Income The inconre received by the asses-ee need not be in the szape of cash only it may alse he s0 cther propery or right which has monetary value. Wheneve- incone is receive e found as per the rules preseribed and this value shall he tukcn to be th: incom c in kind like perquisites hen heir valu: has to it) Tainted Tlegal Income: Income is income. though tainted. For ourposes ef l.come-tax, thers is no dilla be ween leya. and tainted income. Even illegal inzeme is uxed just lilks any legal imcore income reaches the hands of the assessce, it would be an applicst en ot ncome and this would result in taxariun ol suchs income in the hands of the assessce However. waere there is s diversion oi inmcome before it reaches the hands of tha (iv) Application of Income v Diversion Where an assessee applizs an inome odisehrge ati obligat on fter the () Disputed Iucome: Ary dispute regarding the title of he acome canuaut hold up the assessment of the incarre in the hards of the recipieii. The reeipient is, therefore, chargeable to tax though there may be tival claims o the source of the assesses, it cannot be treated as an incone of the asse ssee.