Income Tax Act, 2025
Section 7: Ins. by Act 33 of 2009, s. 8 (w.e.f. 12010).
7. Ins. by Act 33 of 2009, s. 8 (w.e.f. 12010).
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CHAPTER IV
COMPUTATION OF TOTAL INCOME
Heads of income
14. Heads of income.—Save as otherwise provided by this Act, all income shall, for the purposes of
charge of income-tax and computation of total income, be classified under the following heads of
income:—
A.—Salaries.
1* * * * *
C.—Income from house property.
D.—Profits and gains of business or profession.
E.—Capital gains.
F.—Income from other sources.
2[14A. Expenditure incurred in relation to income not includible in total income.—3[(1)] For the
purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of
expenditure incurred by the assessee in relation to income which does not form part of the total income
under this Act.]
4[(2) The Assessing Officer shall determine the amount of expenditure incurred in relation to such
income which does not form part of the total income under this Act in accordance with such method as
may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied
with the correctness of the claim of the assessee in respect of such expenditure in relation to income
which does not form part of the total income under this Act.
(3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims
that no expenditure has been incurred by him in relation to income which does not form part of the total
income under this Act:]
5[Provided that nothing contained in this section shall empower the Assessing Officer either to
reassess undersection 147 or pass an order enhancing the assessment or reducing a refund already made
or otherwise increasing the liability of the assessee undersection 154, for any assessment year beginning
on or before the 1st day of April, 2001.]
A.—Salaries
15. Salaries.—The following income shall be chargeable to income-tax under the head “Salaries”—
(a) any salary due from an employer or a former employer to an assessee in the previous year,
whether paid or not;
(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a
former employer though not due or before it became due to him;
1. The letter or words “B. —Interest on securities” omitted by Act 26 of 1988, s. 8 (w.e.f. 11989).
The Assessing Officer shall determine the amount of expenditure incurred in relation to such
income which does not form part of the total income under this Act in accordance with such method as
may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied
with the correctness of the claim of the assessee in respect of such expenditure in relation to income
which does not form part of the total income under this Act.
The provisions of sub-section
shall also apply in relation to a case where an assessee claims
that no expenditure has been incurred by him in relation to income which does not form part of the total
income under this Act:]
5[Provided that nothing contained in this section shall empower the Assessing Officer either to
reassess undersection 147 or pass an order enhancing the assessment or reducing a refund already made
or otherwise increasing the liability of the assessee undersection 154, for any assessment year beginning
on or before the 1st day of April, 2001.]
A.—Salaries
15. Salaries.—The following income shall be chargeable to income-tax under the head “Salaries”—
any salary due from an employer or a former employer to an assessee in the previous year,
whether paid or not;
any salary paid or allowed to him in the previous year by or on behalf of an employer or a
former employer though not due or before it became due to him;
1. The letter or words “B. —Interest on securities” omitted by Act 26 of 1988, s. 8 (w.e.f. 11989).