VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Case lawIncome-tax Act 2025Chapter VI › Section 107

Section 107 of the Income-tax Act, 2025

Section 107 — Charge of tax.

Where this section sits

Section 107 is in Chapter VI — Aggregation of Income, which runs from section 101 to section 107.

← Section 106  ·  Section 108 →

What this section does

A single sentence: income referred to in sections 102, 103, 104, 105 and 106 is charged to tax as provided in section 195. It supplies no rate of its own and adds no condition — it is the link between the deeming provisions on unexplained credits, investments, money, expenditure and borrowings and the special charging provision.

Why it is there

The deeming sections say what is treated as income but not how it is taxed; this section routes all of them to a single charging provision so the same special treatment applies to every category.

Who it applies to

What this means in practice

There is nothing to do under this section on its own — read the rate, and any denial of deduction or set off, in section 195. Its practical effect is that income deemed under any of the five sections is taxed under section 195 and not at the rates otherwise applicable to the assessee.

Where you meet this section

A taxpayer never meets section 107 on its own. It appears in an assessment order as the bridge between an addition made under sections 102 to 106 — unexplained credits, investments, money, expenditure or borrowings — and section 195, which is where the rate that actually applies is found.

The words themselves

Income referred to in sections 102, 103, 104, 105 and 106 shall be charged to tax as per the provisions of section 195.
s.107, Income-tax Act, 2025.

What people get wrong

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What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.