Skip to content

CS Executive · Tax Laws and Practice · Incomes which do not form part of Total Income

An income is listed in one of Schedules II to VI of the Income-tax Act, 2025, but in a particular tax year the conditions attached to it in the Schedule are not satisfied. What is the consequence under Section 11?

If the conditions specified in the Schedule are not satisfied in a tax year, the income is charged to tax on the total income for that same tax year under Section 11(2). Being listed in the Schedule alone does not secure exclusion; compliance with conditions is required.

  1. AThe income remains excluded because it is enumerated in the Schedule
  2. BOnly half of the income is excluded
  3. CThe income is charged to tax on the total income for that tax yearCorrect
  4. DThe income is charged to tax only from the next tax year

Explanation

Section 11(2) states that where the conditions are not satisfied in any tax year, the income is charged to tax on the total income for that tax year. Mere listing in a Schedule is not enough, and there is no partial exclusion or deferral in the text.

Did you get it right without looking?

One question tells you little. A timed set on Incomes which do not form part of Total Income shows your real accuracy, how long you take and where you lose marks.

Practise Incomes which do not form part of Total IncomeFree diagnostic mock

More Incomes which do not form part of Total Income questions