Question

'Income' is defined under Section 24 of the Income Tax Act, as

• A. Profits and gains
• B. Dividend
• C. Voluntary contribution received by a Trust for charitable Purpose
• D. All of the above

Hint:

The definition of 'income' in Section 2(24) of the Income Tax Act is inclusive ("income includes..."). This means it's a very wide definition, and for multiple-choice questions, if several common forms of receipts are listed, 'All of the above' is often the correct answer.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The question asks about the components included in the definition of 'income' under the Income Tax Act, 1961. Note: The question incorrectly states Section 24; the definition of 'income' is in Section 2(24).

Step 2: Detailed Explanation:
Section 2(24) of the Income Tax Act, 1961, provides an inclusive, not exhaustive, definition of 'income'. It lists various items that are considered income. Let's check the options against this definition:
- (A) Profits and gains: This is explicitly included under Section 2(24)(i). It is one of the primary heads of income.
- (B) Dividend: This is explicitly included under Section 2(24)(ii).
- (C) Voluntary contribution received by a Trust for charitable Purpose: This is explicitly included under Section 2(24)(iia).
Since the definition of income in Section 2(24) includes all the items listed in options (A), (B), and (C), the correct answer is 'All of the above'.

Step 3: Final Answer:
The definition of 'income' under the Income Tax Act includes profits and gains, dividends, and voluntary contributions to a trust, among many other things.