What is Determination of tax where total income includes income on which no tax is payable? What is Tax on accumulated balance of recognised provident fund? Section 110 and 111 of Income Tax Act 1961

Determination of tax where total income includes income on which no tax is payable and Tax on accumulated balance of recognised provident fund are defined under sections 110 and 111 of Income Tax Act 1961. Provisions under these Sections are :

Section 110 of Income Tax Act "Determination of tax where total income includes income on which no tax is payable"

Section 110. Where there is included in the total income of an assessee any income on which no income-tax is payable under the provisions of this Act, the assessee shall be entitled to a deduction, from the amount of income-tax with which he is chargeable on his total income, of an amount equal to the income-tax calculated at the average rate of income-tax on the amount on which no income-tax is payable. 

 

Section 111 of Income Tax Act "Tax on accumulated balance of recognised provident fund"

Section 111. (1) Where the accumulated balance due to an employee participating in a recognised provident fund is included in his total income, owing to the provisions of rule 8 of Part A of the Fourth Schedule not being applicable, the Assessing Officer shall calculate the total of the various sums of tax in accordance with the provisions of sub-rule (1) of rule 9 thereof.

(2) Where the accumulated balance due to an employee participating in a recognised provident fund which is not included in his total income under the provisions of rule 8 of Part A of the Fourth Schedule becomes payable, super-tax shall be calculated in the manner provided in sub-rule (2) of rule 9 thereof.

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