Income Tax Act 2025: Section 107 for Tax Year 2026-27

Charge of tax

[Section-107 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Income referred to in sections 102, 103, 104, 105 and 106 shall be charged to tax as per the provisions of section 195.

FAQs on Section 170 of Income Tax Act 2025

Q1: What does Section 107 of the Income Tax Act, 2025 deal with?
Section 107 deals with the charge of tax on certain types of income.

Q2: From when is Section 107 applicable?
Section 107 is applicable with effect from 1st April, 2026.

Q3: Which types of income are covered under Section 107?
Income referred to in sections 102, 103, 104, 105, and 106 is covered.

Q4: How will the income referred to in Sections 102 to 106 be taxed?
It shall be charged to tax as per the provisions of Section 195.

Q5: Is Section 107 an independent charging section?
Section 107 links the charge of tax for specified incomes to Section 195, rather than independently charging tax.

Q6: Does Section 107 specify tax rates?
No, Section 107 itself does not specify tax rates; it refers to Section 195 for the manner of taxation.

Q7: Which section should be referred to for the method and rate of taxation under Section 107?
Section 195 should be referred to for the method and rate of taxation.

Q8: What happens if income under Sections 102 to 106 is earned?
Such income will be taxed following the procedure and rates mentioned in Section 195.

Q9: Is Section 107 applicable to all incomes?
No, it is applicable only to incomes referred to in Sections 102, 103, 104, 105, and 106.

Q10: Can Section 107 be applied without referring to Section 195?
No, Section 195 must be referred to for the computation and collection of tax.

Q11: Is there any mention of exemptions in Section 107?
No, Section 107 does not mention any exemptions.

Q12: What is the significance of Section 107 in the Income Tax Act, 2025?
Section 107 establishes the legal basis for taxing certain specified incomes through a cross-reference to Section 195.

Q13: Does Section 107 mention who is liable to pay tax?
Section 107 indicates that income will be charged to tax but does not itself specify the taxpayer; liability details must be checked in the relevant sections and Section 195.

Q14: Is Section 107 linked to special income categories?
Yes, it is linked to specific types of income mentioned in Sections 102 to 106.

Q15: How should one understand the tax treatment under Section 107?
One must read Section 107 along with Section 195 and the related income sections (102 to 106) for a complete understanding.