Income From Other Sources Chapter- 13
(11B) Inter-corporate
dividend for
group relief
purposesThe provisions of section 150 shall not apply in respect of inter-
corporate dividend within the group companies entitled to group
taxation under section 59 AA subject to the condition that the return of
the group has been filed for the latest completed tax year.
(11C) Inter-corporate
profit on debt
for group relief
purposesThe provisions of section 151 shall not apply in respect of inter-
corporate profit on debt within the group companies entitled to group
taxation under section 59 AA subject to the condition that the return of
the group has been filed for the latest completed tax year.PART – II (For CA Mod F and ICMAP students)- Authors [U/s 89]
Where the time taken by an author of a literary or artistic work to complete the work exceeds 24
months, the author may elect to treat any lump sum amount received by the author in a tax year on
account of royalties in respect of the work as having been received in that tax year and the
preceding two tax years in equal proportions.
Explanation: The aforesaid section saves authors or artistic work from a higher rate of tax for any
amount received for such work where the work takes more than 24 months to complete.
Example: Mr. Hakeem introduced his new book in a seminar conduct in University of the Punjab. He
has received the consideration of Rs. 300,000 against this book after the seminar. You are required
to compute his taxable income if he completes his work:
Within one year
Within 30 month period
Within 18 months.
Within 25 months.
within 4 years.
Solution:
300,000
100,000 (300,000 / 3) in current year and preceding two years
300,000
100,000 (300,000 /3) in current year and preceding two years
100,000 (300,000 / 3) in current year and preceding two years
Unexplained income or assets [U/s 111]
1. Where
(a) any amount is credited in a person's books of account;
(b) a person has made any investment or is the owner of any money or valuable article;
(c) a person has incurred any expenditure, or
(d) any person has concealed income or furnished inaccurate particulars of income including
(i) the suppression of any production, sales or any amount chargeable to tax; or
(ii) the suppression of any item of receipt liable to tax in whole or in part,
and the person offers no explanation about such items or the explanation offered by the
person is not, in the commissioner opinion, satisfactory-
a) the amount credited, value of the investment, money, value of the article, or amount of
expenditure shall be included in the person’s income chargeable to tax under the head
“Income from Other Sources” to the extent it is not adequately explained; and