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63. Determination of total income
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63. Determination of total income.—The total income of a person for any financial year shall be computed in accordance with the formula—
(A – B) + C
Where
A = the gross total income from ordinary sources for the financial year ;
B = the aggregate amount of deductions allowed under sub-chapter IV ; and
C = the total income from special sources for the financial year.
Clause 63 seeks to provide the manner in which the total income of any person in a financial year is to be determined. For the sake of simplicity, the clause provides for the determination of total income by means of a mathematical formula. The clause provides that the total income of a person for a financial year is to be determined by adding the total income from ordinary sources with the total income from the special sources. The total income from ordinary sources shall, however, be reduced by the amount of deductions available to the person under sub-chapter IV of Chapter III before it is aggregated with the total income from special sources.
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