Income-tax Act, 1961 · Chapter II: Basis of Charge
Section 7: Income deemed to be received
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
In plain words
This section defines specific amounts as income received in the previous year for tax purposes. It covers annual additions to recognised provident fund balances, transferred balances in such funds, and contributions made by the Central Government or other employers to employee pension scheme accounts under section 80CCD.
- Annual accretion to a recognised provident fund balance is deemed received, subject to rule 6 of Part A of the Fourth Schedule.
- Transferred balances in a recognised provident fund are deemed received, subject to sub-rule (4) of rule 11 of Part A of the Fourth Schedule.
- Contributions made by the Central Government or any other employer to an employee's account under a section 80CCD pension scheme are deemed received.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
The following incomes shall be deemed to be received in the previous year:—
(i) the annual accretion in the previous year to the balance at the credit of an employee participating in a recognised provident fund, to the extent provided in rule 6 of Part A of the Fourth Schedule;
(ii) the transferred balance in a recognised provident fund, to the extent provided in sub-rule (4) of rule 11 of Part A of the Fourth Schedule; [(iii) the contribution made, by the Central Government [or any other employer] in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD.]
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.