10-28-2004, 03:40 AM
Although any new reply to my previous post is not given, but i would like to further elaborate the issue of 'Dividend chargeable under income from other sources'. The purpose of taking much interest in the questions of tax is that, the subject of tax is my favourite subject, although my knowledge is limited to module C's tax, so far.
From your question i concluded that you want to say that if the dividend is chargable under PTR, then why it falls under 'Income from other Sources' & then why it is not included in computation of taxable income.
Income from other sources is the last and residual head of income, means that if income (except exempt income and all other incomes which are specifically included in this head) remains unclassified in other four heads of income, then it shall fall under income from other sources, even if the income is chargeable under PTR. It means that every attempt should be made to fit the income in other four heads of income in order to avail the previlages available to other heads of income (e.g to income from business) like deductions, set off & c/f of losses etc (which are not available normally to income falling under the head income from other sources).
I will come back to your question, you said 'what is the connection b/w PTR and income from other sources'. Now you tell me, if PTR income will not to be included in any of the five heads, then where it should be adjusted?
PTR income is always not included in income from other sources for the purpose of computation of taxable income only, because computation is always made for income chargable under NTR, and PTR income, is self explanatory, already presumed.
I hope, my little knowledge will contribute in solving your problem.
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From your question i concluded that you want to say that if the dividend is chargable under PTR, then why it falls under 'Income from other Sources' & then why it is not included in computation of taxable income.
Income from other sources is the last and residual head of income, means that if income (except exempt income and all other incomes which are specifically included in this head) remains unclassified in other four heads of income, then it shall fall under income from other sources, even if the income is chargeable under PTR. It means that every attempt should be made to fit the income in other four heads of income in order to avail the previlages available to other heads of income (e.g to income from business) like deductions, set off & c/f of losses etc (which are not available normally to income falling under the head income from other sources).
I will come back to your question, you said 'what is the connection b/w PTR and income from other sources'. Now you tell me, if PTR income will not to be included in any of the five heads, then where it should be adjusted?
PTR income is always not included in income from other sources for the purpose of computation of taxable income only, because computation is always made for income chargable under NTR, and PTR income, is self explanatory, already presumed.
I hope, my little knowledge will contribute in solving your problem.
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