Tax deducted at source is grossed up as income received, subject to specified exclusions for computing total income.

Tax deducted at source and eligible foreign tax deducted are deemed to be income received by the assessee for computing total income. Gross income consequently includes both the net amount received and tax deducted. The rule excludes employer-paid tax on non-monetary perquisites and tax deducted under the specified table entry. It is a computational deeming fiction for grossing up income, not an additional tax levy.

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