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61. Aggregation of income from ordinary sources
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61. Aggregation of income from ordinary sources.—(1) The current income from ordinary sources shall be the aggregate of—
(a) income under the head "Income from employment" ;
(b) income under the head "Income from house property" ;
(c) income under the head "Income from business" ;
(d) income under the head "Capital gains" ; and
(e) income under the head "Income from residuary sources".
(2) The current income from ordinary sources shall be aggregated with the unabsorbed preceding year loss from the ordinary sources, if any ; and the net result of the aggregation shall be the gross total income from ordinary sources, for the financial year.
(3) The gross total income from ordinary sources, for the financial year, shall be treated as "nil" if the net result of the aggregation under sub-section (2) is negative ; and the absolute value of the net result shall be the amount of unabsorbed current loss from ordinary sources, for the financial year.
Clause 61 seeks to provide the manner in which the current income from ordinary sources for a year is to be computed. The classification of income as "Income from ordinary sources" and "Income from special sources" has been provided in clause 13 of the Code.
The said clause further provides that the current income of a financial year under each head of income is to be aggregated to arrive at the current income from ordinary sources. This current income is to be further aggregated with the unabsorbed preceding year loss from ordinary sources to arrive at the gross total income from ordinary sources.
The said clause also provides that if the gross total income from ordinary sources so arrived at is negative then it shall be treated as nil and the absolute value of the negative income shall be the unabsorbed current loss from ordinary sources.
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