Which of the following is not included in the term Income under the Income Tax Act, 1961?
A. Reimbursement of travelling expenses
B. Profits and gains of business or profession
C. Dividend
D. Profit in lieu of salary
Answer: Option A
Solution (By Examveda Team)
Income under the Income Tax Act, 1961 includes all receipts that add to the taxpayer’s wealth such as profits and gains of business or profession, dividends, and profit in lieu of salary.Reimbursement of travelling expenses does not represent an increase in the income of the employee, but only compensates the actual expenses incurred for official purposes.
Hence, reimbursement of travelling expenses is not treated as income under the Income Tax Act, 1961.
This Question Belongs to Commerce >> Income Tax And Corporate Tax
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Comments (1)
A. 3, 4 and 5
B. 2, 4 and 5
C. 1, 2 and 3
D. 1, 3 and 5
Entertainment allowance for non-government employees are:
A. Fully exempted
B. Fully taxable
C. Partially taxable
D. Fully exempted in specified
E. Partially exempted in selected areas
In tax laws, donation to approved and notified association for scientific research is allowed as:
A. 125% of the donation
B. 100% of the donation
C. 175% of the donation
D. 150% of the donation
A. Both the Statements (I) and (II) are correct
B. Statement (I) is correct, but (II) is incorrect
C. Both Statements (I) and (II) are incorrect
D. Statement (II) is correct, but (I) is incorrect
Under the Income Tax Act, 1961, reimbursement of travelling expenses is generally not considered as "income" because it is a repayment of expenses incurred by an employee for official purposes and does not represent a gain or profit to the employee.