Accountancy Forum

i wanted to inquire that what does the pharse " and includes loss of income" means in the definition of income


afshan

it means that any loss/expense that is not adjustable/allowable as a deduction from taxable income technically becomes the income of that person. for eg. loss from income under PTR is not adjustable so technically it becomes your income... thats my understanding
for any further queries you may contact mr.khalid petiwala at kpetiwala@hotmail.com



Edited by - net_mania on May 20 2004 80431 PM

Edited by - net_mania on May 20 2004 80003 PM

AOA

As the minimum tax is on turnover and which arise in case of loss.. i.e section 80D of ITO 79.. so that loss is to be covered in defination of income because tax is to be levied on that .. thats my view

regards

az

The definition of "INCOME" is very important from ICAPs' point-of-view.The definition of income also includes the negative income which is generally referred to as "Loss" according to ITO,2001.where;
Taxable Income = Total Income - Deductible Allowances

<"A realm of control">

hay,
this means that if u have income under other four heads but u have loss under the head income from business. Suppose
Income from salary 90000
Income from property 80000
Income from business (30000)
etc _______
total/taxable income 140000
It means that loss from business is also included in the calculation of total/taxable income, that is what 'income also includes loss'..
i hope that u will be satisfied, although the reply is late