Amended and updated notes on section 7 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to income deemed to be received.
Chapter II (Sections 4 to 9A) of the Income Tax Act 1961 deals with the provisions related to basis of charge. Section 7 of IT Act 1961-2023 provides for income deemed to be received.
Recently, we have discussed in detail section 6 (Residence in India) of IT Act 1961. Today, we learn the provisions of section 7 of Income-tax Act 1961. The amended provision of section 7 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 7 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-7: Income deemed to be received
The following incomes shall be deemed to be received in the previous year:—
(i) the annual accretion in the previous year to the balance at the credit of an employee participating in a recognised provident fund, to the extent provided in rule 6 of Part A of the Fourth Schedule;
(ii) the transferred balance in a recognised provident fund, to the extent provided in sub-rule (4) of rule 11 of Part A of the Fourth Schedule;
(iii) the contribution made, by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD.