Explain Income deemed to be received in India.

Incomes deemed to be received refers to the incomes which have not actually being received but are a part of the income of the assessee under the law. These are also known as statutory receipts. The statutory receipts include the following receipts.:

Excessive contribution to the employee’s recognized provident fund. This includes the contribution made by the employer in excess of 12% and the interest credit to the Provident Fund balance in excess of 12% will deemed to have been received.

If the employee has an old provident fund which was not recognized earlier but has now been recognized, the Tax Officer adds up the amount to the to the employee’s account. The old funds would have been taxed earlier had it been recognized earlier. So it is subject to tax now, considered as income deemed to be received.

Tax deducted at source is also deemed to be received by the person. Dividend paid by the company is deemed to be received in the year in which it is declared, distributed or paid. Interim dividend is also deemed to be the income of the previous year.