Section 195 - Tax on income referred to in sections 102 to 106.

Special tax regime for specified income blocks deductions, loss set-offs, and applies a separate computation method.

Tax on income falling within sections 102 to 106 is computed under a special charging mechanism where such income is included in the assessee's returned income or in income determined by the Assessing Officer. The tax payable consists of tax on that specified income at the prescribed special rate, together with the tax that would have been payable had the assessee's total income been reduced by that specified income. No deduction for expenditure or allowance and no set-off of loss is permitted in computing the income covered by this special regime.