Question

The term “Income” is described in the Income Tax Act, 1961 under ...........

• A. Section 3
• B. Section 10E
• C. Section 2(24)
• D. Section 2(40)

Hint:

Section 2(24) provides an inclusive definition of income, which means any monetary benefit, profit, or gain can be considered as income for tax purposes.

Answer 1

The Correct Option is C

Step 1: Definition under the Income Tax Act, 1961.
Section 2(24) of the Income Tax Act defines the term “Income.” It includes a wide range of receipts such as profits, dividends, voluntary contributions, and other financial gains, whether recurring or non-recurring.
Step 2: Understanding its scope.
The definition of income is inclusive rather than exhaustive. It covers all monetary benefits or gains that add to the taxpayer’s wealth, whether derived legally or illegally.
Step 3: Conclusion.
Therefore, “Income” is defined under Section 2(24) of the Income Tax Act, 1961.