Section 95
Section 95: profits chargeable to tax
Section 95 is a short cross-reference provision. It borrows the rules in Section 38 (which deal with amounts that become taxable when a previously allowed deduction, loss, or expenditure is later recovered, recouped, or reversed) and applies them to income assessed under 'Income from other sources' in the same way those rules apply to business income.
What Section 95 says
The provisions of Section 38(1), (2), (3) and (4) apply in computing the income of an assessee under Section 92 (Income from other sources), in the same way they apply in computing income under the head 'Profits and gains of business or profession.'
Frequently asked questions
Why does Section 95 refer back to Section 38?
Section 38 governs how amounts recovered, recouped or reversed against previously allowed deductions become taxable. Section 95 extends those same rules to income computed under the 'Income from other sources' head.
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