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CS Executive · Tax Laws and Practice · Basic Concept of Income Tax

Under section 4(3) of the Income-tax Act, 2025, what is the effect of the statement on additional income-tax?

Section 4(3) of the Income-tax Act, 2025 states that income-tax includes any additional income-tax levied under the Act, by whatever name called. So such additional tax is treated as income-tax and is not excluded or restricted to firms.

  1. AIncome-tax includes any additional income-tax, by whatever name called, levied under the ActCorrect
  2. BAdditional income-tax is excluded from the meaning of income-tax
  3. CAdditional income-tax arises only for firms
  4. DAdditional income-tax is charged only if the tax year differs from the period of income

Explanation

Section 4(3) says income-tax shall also include any additional income-tax, by whatever name called, levied under the Act. It is therefore not excluded and is not limited to firms. It has no link to periods differing from the tax year, which is dealt with in section 4(4).

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