Para

V'EAR
- R

*****

atis
TaLaie
anikrsnrim Nrpan2)house
aaLm* undr the hend lne
tiun prupwty
wwws

At mud *prad and lusAvunt dut ard not

to P&LAS
aAernnds ndidh ardddd 142 o IS]
wwwwvssas

unkr the At«wpams

akmadiesdaatàms but are
***
are not cdbitad to P&LA/c
Les: ndiares dih the At sr paras 05 to 141}
adke asaaatis unier to P&LA:T but are exempt
es: whidh are mhtod
mes
hends ot ine
wwwwsiess

raeaudkr unkrother P&LAe dut are to

Adh: Thw omes udish are nor rrditad
and ais d busdas or mofesion
aa unkr the head "Protits
busines of
Tarar inonunder the head Protîts and gains

orpnuiesin

Anmunt ad capital gains(«*para lo 54EB,54EC,

54, 5-E, SID, 54EA,
Less: Amount exemp under
sartions

S4F,and S4G [se*paras

19 to 1] w
***
the head gains
Taxable income under "Capital

ae from oxher svuns

Grss inomejse* paras 191 and 192] ******
57 |scepara 200]
Les: Datuctions under saction sources"
****
the head lIncone from other
Taxable income under

Total fietn+(2+()+(9+( forward of lasses

*************
and
Les:Adjustment on account of set-off carry

e paras 226
to 232)

Gross total income

under sections 80COC to 80U [seeparas 237 to 267]
Less: Deductions

to tax
incohe or net income
Total liable

Conpoutatio of tax iabilhy

Tax on net income [see para &1 and Annex1)
Less: Rebate under sections 8SBand 88C
Balance
Add: Surcharge ******

Tax and surcharge *********

Les Rebateunder sections 90and 91 *** ***

86, 89,
Tax ***********
 CHAPTER THREE

Incomes exemptJfrom tax

Incomesexempt under section 10
38.The following incomesarc
absolutely
form part of total income;the burden f exempt from tax under section 10, as
they do not
this section is on the proving that a particular item of
assessce-BuchaF. Guzdar v. income falls within
Religious Endwment CIT[1955|27 ITR 1 (SC), H.E.H Nizam's
Trustv.CIT[1966]59 ITR 582
35 ITR 312 (SC). (SC)and CITv.
RamakrishnaDeo|l959)
38.1 Agricultural income
[Sec.10(1)]-
Agricultural income is
within the definition of
"agricultural income" as
exempt from tax if it comes
however, agricultural income is taken into given in section 2(1A). In some
cases,
consideration to find out tax on
income.For detailed discussion, see non-agricultural
paras 278 to 281
38.2 Receltpts bya
member froma Hindu undivided family
by an individual, asamember of a Hindu [Sec.10(2)]- Any sum received
undivided family, either out of
or out of income ol estate incomeof the family
belonging to the family, is
chargcable to tax in the hands of an individual
exempt from tax. Such receipts are not
member even if tax is not paid or
the family on its total incomc.The payable by
exemption is hbased upon the
double taxation. Income of a Hindu undivided principle of avoidance of
family is taxable in its own hand. Section
therefore, exempts income reccivcd 10(2),
by a member from his Hindu undivided
those members of a Hindu undivided family. Only
family can claim exemption under clause who are
entitled to demand shareon partition or are entitled to this
maintenance under the Hindu law.
Some of the receipts from a Hindu undivided family are,
however, taxable videsection 64(2)
seepara214.
Provisions illustrated X, an has personal income of Rs. 46,000
individual,
He is also for the previous year
1999-2000. a nember of
a Hindu undivided family which has an income of Rs.
1,08,000 for the
previous year 1999-2000. Out of income of the family, X gets Rs. 12,000,
being his share of income.
Rs. 12,000 will be exempt in the hand
of X by virtue of section 10(2). The position will remain the same
whether (or not) the family is chargeable to tax. X shall
pay tax only on his income of Rs. 46,000.
38.3 Share of profit from partnershipfim [Sec. 10(2A)] Share of profit received
by
partners from a firm (whichis assessed as firm) is not taxable in the hands of partners. For
detailed discussion, see para 322.

38.4 and non-recurring All which are of casual and

Casual receipts (Sec. 10(3)J- receipts
non-recurring nature[to the
extent
such receipts do not excecd Rs.
5,000 (Rs.2,500 in respect
of winnings from races including horse races) in aggregate) are exempt from tax.

384-1 Conditions- The aforesaid exemptionis available only if the following conditions are
satisfied-

a the receipt should be casual in nature;

b it should be "non-recurring";
c it should not be taxable as capital gains under section 45 [see para 166]
d it should not arise from business or the exercise of a profession or occupation [seepara
101];and
ethe receipt is not by way of addition to the remunerationof an employee[seepara 46].

65