https://www.taxtmi.com/caselaws?id=16099 Incentive bonus received by a Development Officer of LIC is treated as salary income, not as business income. Once the bonus is assessable under the head "Salaries," the statutory deduction under section 16(i) of the Income-tax Act, 1961 applies, and no further deduction for expenditure said to have been incurred in earning the bonus is permissible. The legal position follows the earlier view that the character of the receipt, rather than the employee's duty-related , determines the applicable head of income and deductions. The issue is resolved in favour of the Revenue and against the assessee. en-us Wed, 28 Oct 1998 00:00:00 +0530 Tue, 01 Sep 2009 11:19:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16099 Incentive bonus received by a Development Officer of LIC is treated as salary income, not as business income. Once the bonus is assessable under the head "Salaries," the statutory deduction under section 16(i) of the Income-tax Act, 1961 applies, and no further deduction for expenditure said to have been incurred in earning the bonus is permissible. The legal position follows the earlier view that the character of the receipt, rather than the employee's duty-related , determines the applicable head of income and deductions. The issue is resolved in favour of the Revenue and against the assessee. Case-Laws Income Tax Wed, 28 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16099