Total income
[Section-101 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
In computing the total income of an assessee, there shall be included all income on which no income-tax is payable under Chapter XVIIA-4.
FAQs on Section 101 of Income Tax Act 2025
What is Section 101 of the Income Tax Act, 2025 about?
Section 101 deals with the computation of total income of an assessee.
From when is Section 101 applicable?
Section 101 is applicable with effect from 1st April, 2026.
What should be included while computing total income under Section 101?
While computing total income, all income must be included, even income on which no income-tax is payable under Chapter XVIIA-4.
Does Section 101 exclude any income from total income computation?
No, Section 101 requires that all income be included, even if income-tax is not payable on certain incomes under Chapter XVIIA-4.
What is the significance of Chapter XVIIA-4 in relation to Section 101?
Chapter XVIIA-4 specifies certain incomes on which no income-tax is payable, but Section 101 still mandates their inclusion in the total income computation.
Is there any exception provided in Section 101 for excluding income while calculating total income?
No, Section 101 clearly states that all income, including income exempt from tax under Chapter XVIIA-4, must be considered while calculating total income.
Who is referred to as ‘assessee’ under Section 101?
An assessee refers to any person by whom income-tax or any other sum of money is payable under this Act.
Does Section 101 specify any method for calculating total income?
Section 101 does not specify the method but mandates the inclusion of all income, even if tax is not payable under Chapter XVIIA-4.
What happens if an assessee ignores income on which no tax is payable under Chapter XVIIA-4 while computing total income?
Ignoring such income would be incorrect, as Section 101 requires inclusion of all such income in total income computation.
Is income exempt under Chapter XVIIA-4 completely ignored for tax purposes according to Section 101?
No, even though tax may not be payable on such income under Chapter XVIIA-4, it must still be included in the computation of total income.
Can the total income be zero under Section 101?
It is possible if after including all incomes and applying deductions and exemptions, the net figure becomes zero, but all income must still be included initially.
Why is it necessary to include income on which no tax is payable?
It ensures accurate reporting and enables correct application of various provisions such as set-off of losses, deductions, and rates of tax where applicable.
Does Section 101 itself levy tax on incomes included from Chapter XVIIA-4?
No, Section 101 only mandates inclusion in the total income; taxability depends on other provisions of the Act.
Is there a difference between taxable income and total income under Section 101?
Section 101 addresses total income; the taxable income is determined after applying applicable exemptions, deductions, and rebates elsewhere in the Act.
How does Section 101 affect the filing of returns?
An assessee must disclose all incomes, including those where no tax is payable under Chapter XVIIA-4, while filing returns as per the computation of total income.
Does Section 101 override other provisions granting exemptions?
No, Section 101 only requires inclusion for the purpose of computing total income; exemptions and reliefs still apply separately.
Is the inclusion of exempt income common practice under Section 101?
Yes, Section 101 mandates such inclusion to ensure transparency and proper accounting for total income computation.
Does Section 101 require income under Chapter XVIIA-4 to be taxed?
No, it requires only the inclusion of such income for computation purposes, not necessarily taxation.
What is the practical effect of Section 101 on an assessee’s income computation?
The assessee must include all incomes, irrespective of taxability under Chapter XVIIA-4, in their total income when filing returns and calculating tax liability.
