TOTAL INCOME

This discussion clarifies the calculation of total income for an individual receiving dividend income and incurring interest expenses on a loan taken for investment. It explains that while a portion of the dividend may be exempt, the interest expense incurred to earn that dividend is deductible, albeit capped at 20% of the dividend income, as per amended Section 57 of the Income Tax Act, 1961. This leads to a revised taxable income figure.