Section 39 : Income and net income for property and liability

1) The following amounts shall be included in the incomes for the property or liability of any person subject to this Act:-

a) The amounts received, in respect of the liability, by that person bearing the liability,

b) The amounts to be received by that person in acquiring the property or in respect of bearing the liability, including the amounts acquired by altering or lessening the value of the property or increasing the liability and

c) The amounts received or to be received by that person in respect of the disposal of that property or liability.

Provided that the amount exempted from tax, taxable amount, payment subject to tax deduction finally or the amounts to be included in the income in assessing the income of that person shall not be included in such income.

2) The net incomes for any property or liability at any time shall include the amounts to the extent of the excess of the incomes for that property or liability than the sum of all expenses for that property or liability at that time.

3) The amount to be included in the income in computing the income as referred to in Chapter-6 and 7 shall be deemed as if they were made in respect of the incomes for any property or liability and shall be dealt with pursuant to sub-section (1).

Provided that Section 26 shall not apply in respect of the above-mentioned provision.