Notional Income

Notional Income

Income one may not have received but on which one may still be taxed. The term is often associated with income from rental property. In India, for example, one must pay taxes on the amount of rent one might reasonably expect to earn in a year, whether or not one actually earns it. This fictional money is notional income because one must still pay income tax on it.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
In this regard, there is a need to exempt levy of Minimum Alternate Tax (MAT) on write back of notional income pursuant to approved plan of IBC," it noted.
We have also recommended that tax on agriculture income be levied on actual and not notional income including on rental income of agricultural land of the absentee landlords.
In fact, once you reach state pension age, you may lose some benefits even if you don't take your pension because it counts as 'notional income'.
Sources said that the ministry told PMO that the contractors have also used the clause related to notional income tax in the PSC in a manner so as to benefit themselves unjustly.
115U of the Income Tax Act, 1961, has created an anomaly whereby investors have to pay tax on the notional income. Normally, investors should pay tax on the income, as and when they receive it.
Assessed earnings are unrelated to actual earnings and instead correspond to notional income classes which, depending on the fund, increase with years of experience.
The balance was made up of donations of pounds 96,912, grants of pounds 93,087 and notional income of pounds 10,000.
A EVEN though dividends are re-invested, you will still be deemed as having received notional income and you will be liable for tax on the difference, so I would suggest they are transferred to your wife's name.
He recommended that in the forthcoming Sindh Budget the agricultural income should be taxed on actual, and not notional income, including rent income of absentee landlords.
A bench of Justice Gyan Sudha Misra and Justice Kurian Joseph has formulated new guidelines on computing the quantum of compensation for children as the amount under the existing statutory scheme was computed after taking the notional income of a child to be mere ` 1,250 per month.
Pension contributions are 20% of assessed earnings, (4) but these are unrelated to actual earnings and instead correspond to notional income classes which, depending on the fund, increase with years of experience.
Current Business, Japan Bank of Japan Monthly Statistics, Germany Deutsche Bundesbank, France INSEE, UK Economic Trends, Italy IMF International Financial Statistics, Canada Notional Income and