Section 145B of Income Tax Act for AY 2023-24

Taxability of certain incomes. Notes on section 145B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962.

Amended and updated notes on section 145B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to taxability of certain incomes

Chapter XIV (Sections 139 to 158) of the Income Tax Act 1961 deals with the provisions related to procedure for assessment. Section 145A of IT Act 1961 provides for taxability of certain income.

Recently, we have discussed in detail section 145A (Method of accounting in certain cases) of IT Act 1961. Today, we learn the provisions of section 145B of Income-tax Act 1961. The amended provision of section 145B is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 145B of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-145B: Taxability of certain income

Section 145B(1) of Income Tax Act

Notwithstanding anything to the contrary contained in section 145, the interest received by an assessee on any compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the previous year in which it is received.

Section 145B(2) of Income Tax Act

Any claim for escalation of price in a contract or export incentives shall be deemed to be the income of the previous year in which reasonable certainty of its realisation is achieved.

Section 145B(3) of Income Tax Act

The income referred to in sub-clause (xviii) of clause (24) of section 2 shall be deemed to be the income of the previous year in which it is received, if not charged to income-tax in any earlier previous year.


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