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CS Executive · Tax Laws and Practice · Deductions

Under section 122(9) of the Income-tax Act, 2025, when computing a Part C deduction in respect of a particular nature of income included in gross total income, which amount of that income is treated as the eligible income?

The eligible income is the income of that nature computed under the Act before making any deduction under this Chapter. This prevents the base from being reduced by other deductions or inflated by book figures, and it is not the whole gross total income.

  1. AThe income of that nature as computed under the Act before making any deduction under this ChapterCorrect
  2. BThe income of that nature after reducing it by deductions under Part C
  3. CThe income of that nature as shown in the books of account of the assessee
  4. DThe gross total income of the assessee from all sources

Explanation

Section 122(9) states that the income of that nature as computed under the Act, before any deduction under the Chapter, alone is deemed to be the income derived or received and included in gross total income. Using the post-deduction figure or book figure is inconsistent with this rule.

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