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Which of the following is not included in the term Income under the Income Tax Act, 1961?
Answer & Solution
Correct Answer:
Option
A
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.
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.
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