Such incomes which are not actually received by a person, but law considers them as receipt or incomes, are called incomes deemed to be received in India. The term ‘Statutory receipts’ can be easily used to cover this term. Following are the instances of incomes deemed to be received
(i) Tax deducted at source is income deemed to be received by a person even though he never receives such income (u/s 198).
(ii) Section 7 considers the following incomes as deemed to be received by an assessee
(a) Employer’s contribution to Recognised provident fund in excess of 12% of salary of employee [Section 7(i)1.
(b) Interest accrued on recognised provident fund balance in excess of 9.5% p.a. [Section 7(i)].
(c) Taxable portion of transferred balance of URPF to RPF [Section 7(u)].
(d) The contribution made, by the Central Government in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD [Section 7(iii)].
(iii) Transfer of income without transfer of assets is deemed to be the income of transferor u/s 60 and 61.
(iv) Under section 8, the dividend distributed or deemed to be distributed u/s 2(22) will be deemed to be distributed in the previous year.
(v) Income from undisclosed sources [Sections 68, 69, 69A, 69B, 69C and 69D].
Source : Income taxmanagement