Section 7 — Income deemed to be received and dividend deemed to be income in a tax year

(1) The following incomes shall be deemed to be received in the tax year:—
( a) the annual accretion in that year to the balance at the credit of an employee
participating in a recognised provident fund, to the extent provided in
paragraph 6 of Part A of Schedule XI;
( b) the transferred balance in a recognised provident fund, to the extent
provided in paragraph 11(4) and (5) of Part A of Schedule XI;
( c) the contribution made by the Central Government or any other employ-
er in that year to the account of an employee under a pension scheme
mentioned in section 124.
(2) For inclusion in the total income of an assessee,—
( a) any dividend declared by a company or distributed or paid by it within
the meaning of section 2(40)(a) to 4[(e)] shall be deemed to be the income
4. Substituted for “(f)” by the Finance Act, 2026, w.e.f. 1-4-2026.
of the tax year in which it is so declared, distributed or paid, as the case
may be;
( b) any interim dividend shall be deemed to be the income of the tax year
in which the amount of such dividend is unconditionally made available
by the company to the member who is entitled to it.