Understanding of Provisions of Deemed Income

by Ram Dutt Sharma

Chapter
1. Introduction	1
2. Deemed Dividend [Section 2(40)(e)] [Corresponding to Section 2(22)(e) of the Income Tax Act, 1961]	5
3. Any sum received under Keyman Insurance Policy [Section 2(49)(p)] {Corresponding to section 2(24)(xi) of the Income Tax Act, 1961}	28
4. Income deemed to be received in the Tax year [Section 7] {Corresponding to Section 7 of the Income Tax Act, 1961}	41
5. Income on receipt of Capital Asset or Stock in Trade by Specified Person from Specified Entity [Section 8] {Corresponding to section 9B of the Income Tax Act, 1961}	45
6. Income deemed to accrue or arise in India [Section 9] {Corresponding to Section 9 of the Income Tax Act, 1961}	50
7. Deemed Rental Income from Vacant House Properties [Section 21] {Corresponding to Section 23(2) to (5) of the Income Tax Act, 1961}	122
8. Any sum received or receivable, in cash or in kind under an Agreement [Section 26(2)(h)] {Corresponding to Section 28(va) of the Income Tax Act, 1961}	136
9. Conversion of Inventory into Capital Asset [Section 26(2)(j)] {Corresponding to Section 28(via) of the Income Tax Act, 1961}	158
10. Employees contribution Deposited after due date of filing of return of income under section 263(1) for the tax year [Section 29(1)(e)] {Corresponding to Section 36(1)(va) of the Income Tax Act, 1961}	168
11. Deemed earlier Allowed Expenditure as Business Income [Section 36(5)] {Corresponding to Section 40A(3A) of the Income Tax Act, 1961}	172
12. Cessation of Liabilities deemed Profits Chargeable to Tax [Section 38] {Corresponding to Section 41 of the Income Tax Act, 1961}
13. Determining the full value of consideration in cases of Transfer of Immovable Property - Deemed Capital Gain [Section 78] {Corresponding to Section 50C of the Income Tax Act, 1961}	217
14. Forfeiture of Advance Money on Failed Negotiation [Section 92(2)(h)] {Corresponding to Section 56(2)(ix) of the Income Tax Act, 1961}	259
15. Money/Property received without consideration or Inadequate Consideration [Section 92(2)(m)] {Corresponding to Section 56(2)(x) of the Income Tax Act, 1961}	270
16. Deemed Income - If any amount or benefit is obtained by a successor [Section 95] {Corresponding to Section 59 of the Income Tax Act, 1961}	289
17. Unexplained Credits [Section 102] {Corresponding to section 68 of the Income Tax Act, 1961}	295
18. Unexplained Investment [Section 103] {Corresponding to Section 69 of the Income Tax Act, 1961}	410
19. Unexplained Asset [Section 104] [Corresponding to Section 69A of the Income-Tax Act, 1961]	451
20. Unexplained Expenditure [Section 105] {Corresponding to Section 69C of the Income-Tax Act, 1961}	500
21. Amount borrowed or repaid through negotiable instrument, Hundi etc. [Section 106] {Corresponding to Section 69D of the Income Tax Act, 1961}	531
22. Tax on Income referred to in Sections 102 or 103 or 104 or 105 [Section 195] {Corresponding to Section 115BBE of the Income Tax Act, 1961}	551
23. Interest received on any Compensation or on Enhanced Compensation [Section 278(1)] {Corresponding to Section 145B(1) of the Income Tax Act, 1961}	575
24. Escalation claims and Export Incentives deemed to be the Income [Section 278(2)] {Corresponding to Section 145B(2) of the Income Tax Act, 1961}	582
25. Assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or Concession or Reimbursement [Section 278(3)]{Corresponding to Section 145B(3) of the Income Tax Act, 1961}	585
26. Recovery after Discontinuance of Business or Profession [Section 320] {Corresponding to Section 176 of the Income Tax Act, 1961}	599
27. Tax on Deemed income from Accreted Income of a Trust or Institution [Section 352] {Corresponding to Sections 115TD to 115TF of the Income Tax Act, 1961}	617
28. Deemed Income of Charitable and Religious Trusts	629
29. Notional Income or Deemed Income	640
30. Addition of deemed income on protective basis	649

About the Author

Ram Dutt Sharma

Ram Dutt Sharma was born on 27th June, 1958 in Narnaul, Haryana. He got his post-graduation from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and retired as Income Tax Officer on 30.06.2018. He worked at various stations of North-West Region of Income-tax Department. He has wide experience of all wings of Income-tax Department such as Assessment Unit, Special Range, TDS Wing, Investigation Wing, etc. He has been Contributing articles and addressing on topics relating to Income Tax at NADT Regional Campus, Chandigarh & Bhopal. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations.

He is recipient of first-ever Finance Minister's Award 2017, the Income Tax Departments highest honour for sustained devotion, commitment to duty & promoting excellence in the field of Direct Taxation at National Level. The Hon'ble Union Finance Minister, Shri ArunJaitley conferred this Finance Ministers Award for Excellence for his meritorious services at VigyanBhawan, New Delhi on 24.07.2017.

Awarded by Hon'ble Member (Revenue& TPS), CBT, Special Secretary to the Government of India Certificate of Appreciation for his contribution recognized and included in the chapter Miscellaneous Orders in Let Us Share A compilation of Best Practices & Orders Vol. VIII released on 31stOctober, 2016.

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