Total income

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Chapter VI (Sections 66 to 80) of the Income Tax Act 1961 deals with the provisions related to the aggregation of income and setting off or carrying the forward loss. Section 66 of IT Act 1961-2020 provides for total income. Liability of a person in respect of income included in the income of another person and Total income are defined under sections 65 and 66 of the Income Tax Act 1961.

The amended provision of section 66 is effective for the financial year 2020-21 relevant to the assessment year 2021-22. In this article, you will learn detail of the provisions of section 66 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders, and Press Release by CBDT, Income Tax Department, and the Ministry of Law and Justice, Government of India.

Section 66 of the Income Tax Act states that "In computing the total income of an assessee, there shall be included all income on which no income-tax is payable under Chapter VII and any amount in respect of which the assessee is entitled to a deduction from the amount of income tax on his total income with which he is chargeable for any assessment year in accordance with, and to the extent provided in sections 87 and 88."

In M. E. Moola Sons Limited v. Burjorjee allowed a question of law arising on the facts found, to be raised for the first time before it, the learned Judge observed: "The case furnishes no useful analogy as the scope of the remedy under s. 66 of the Indian Income-tax Act has to be determined with reference to the language of the statute". This decision was followed by the Madras High Court in Commissioner of Income-tax v. Modern Theatres Ltd., and in The Trustees, Nagore Durgah v. Commissioner of Income-tax. In G. M. Chenna Basappa v. Commissioner of Income-tax, the Andhra High Court followed the decision in A. Abboy Chetty and Co. v. Commissioner of Income-tax, Madras and observed that a question not raised before the Tribunal "cannot be said to arise out of its order even if it could be sustained on the facts in the statement of the case by the Tribunal", and that further, the order of the Tribunal should disclose that the point of law was raised before it. The same view was adopted by the Patna High Court in Maharaj Kumar Kamal Singh v. Commissioner of Income Tax.