Standards & Norms

Concept of Income under Income Tax Act

Charitable and religious organisations are subject to separate computation of income under section 11 and the respective clause of section 10(23C). Once a charitable organisation is eligible for tax exemptions then its income is no longer required to be computed under five heads of income under section 14 of the Income Tax Act.

This issue of Standard and Norm basically deals with the concept and definition of Income, Total Income, Total Receipts, Aggregate Receipts under various provisions of Income Tax Act, 1961 and determining income for Audit Requirement.

For detailed analysis of the above, please read this issue.