What is Income?
The Income Tax Act does not define income ; Central Excise Act has no conclusive definition of manufacture or goods ; The Act for Service Tax does not say what ‘service' is. This is the Great Indian Law rope trick.
The new proposed Direct Taxes Code defines income as: [Section 284 is for definitions.]
128. “income” includes,-
(a) gross salary referred to in section 21;
(b) gross rent referred to in section 25;
(c) the amount of any accrual or receipt from the businesses referred to in column (2) of Table-1 in sub-section (2) of section 30;
(d) gross earnings from the business referred to in section 31;
(e) full value of the consideration received or accruing as a result of the transfer of any investment asset referred to in section 48;
(f) gross residuary income referred to in section 56;
(g) voluntary contributions received by any person other than an individual or a Hindu undivided family;
(h) any sum deducted at source on payment received, in accordance with the provisions of Chapter XI; and
(i) income of the nature referred to in column (3) of Table in Rule 3 of the First Schedule;