10-27-2004, 06:39 PM
I m happy to see that an ambiguous question is well understood.
u r very right in saying that dividends is specifically included in "Income from Other Sources" under Sec 39, but after posting the question i came across a footnote in S.A. Salam that says "Dividend income is taxable on presumptive basis u/s 5 as also mentioned in section 39(5).The specific mention of "dividend" in Sec 39(1) as includable in "income from other sources" is misleading.
My confusion is that when under Sec 5 all dividend income is included under PTR without distinction of the recipient and Sec 4(5) says that such income shall not be included in the computation of taxable income.
Taxable income under Sec 9 is total income â total of deductible allowances.
Income from Other Sources is part of total income.
Keeping in mind all above provisions I cant understand the link between dividend falling under PTR and âIncome from Other Sourcesâ falling under normal regime.
As far as chargeability of dividend under âIncome from Businessâ is concerned, it is specifically mentioned in Sec 18(4).
Fozia
u r very right in saying that dividends is specifically included in "Income from Other Sources" under Sec 39, but after posting the question i came across a footnote in S.A. Salam that says "Dividend income is taxable on presumptive basis u/s 5 as also mentioned in section 39(5).The specific mention of "dividend" in Sec 39(1) as includable in "income from other sources" is misleading.
My confusion is that when under Sec 5 all dividend income is included under PTR without distinction of the recipient and Sec 4(5) says that such income shall not be included in the computation of taxable income.
Taxable income under Sec 9 is total income â total of deductible allowances.
Income from Other Sources is part of total income.
Keeping in mind all above provisions I cant understand the link between dividend falling under PTR and âIncome from Other Sourcesâ falling under normal regime.
As far as chargeability of dividend under âIncome from Businessâ is concerned, it is specifically mentioned in Sec 18(4).
Fozia
