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

An income listed in Schedule III is received by an assessee in a tax year, but one of the conditions specified in that Schedule is not satisfied. What is the consequence under Section 11 of the Income-tax Act, 2025?

The income loses its exclusion and is charged to tax on the total income for that tax year. Section 11(2) states that when the conditions in the Schedules are not satisfied, the enumerated income is taxed under the Act for that year, with no partial or deferred relief.

  1. AThe income is charged to tax under the Act on the total income for that tax yearCorrect
  2. BThe income stays exempt, but the assessee must pay a penalty
  3. CThe income is exempt for that year and taxed in the next year
  4. DOnly half the income is brought to tax

Explanation

Section 11(2) says that where the Schedule conditions are not satisfied in a tax year for any enumerated income, that income is charged to tax for that tax year. No partial exemption or deferral is provided, and no penalty replaces the tax.

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