Section 17(2)(vi) of the Income Tax Act
Income-tax Act, 2025: ss.16, 17, 18
Section 17(2)(vi) falls under section 17 of the Income-tax Act, 1961, which corresponds to section 16 (Income from salary), section 17 (Perquisite) and section 18 (Profits in lieu of salary) of the Income-tax Act, 2025.
Read section 16 of the 2025 ActRead section 17 of the 2025 ActRead section 18 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 17(2)(vi) is State Lotteries & Ors. (2001) 249 ITR 186 and Ahmedabad Stamp Vendors Association v. Union of India (257 ITR 202), cited in 121 of the 40 judgments on BharatTax that turn on this section.
Leading authorities on Section 17(2)(vi)
Supplementary commission forional or extra services does not fall within the ambit of Section 194H of the Income Tax Act, 1961. This may affect the applicability of certificates issued under Section 197.
Allotment of shares to employees under an Employee Stock Option Plan (ESOP) before April 1, 2000, is not a taxable perquisite if the benefit's value is unascertainable at the time of option exercise due to conditions like a lock-in period.
An assessing authority is entitled to determine the quantum of refund during a regular assessment made under section 143(3), and the assessed income can fall below the returned income.
A difference between the commercial price and published price of airline tickets is not a special commission or brokerage under section 194H, if the airline has discretion to reduce the published price.
An assessee cannot be held to its original voluntary disallowance if it was made under a wrong belief, especially after a tribunal has ruled in its favor, as the Income Tax Act aims to tax real income.
