Are all receipts considered as income?

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13. Are all receipts considered as income?

No.

Receipts can be classified into two kinds. A) Revenue receipt B) Capital receipt.

The general rule under the Income tax Act is that, all revenue receipt are taxable unless a receipt is specifically exempted and all capital receipts are exempt from taxation unless there is a provision to tax it. Gifts and loans etc are in the nature of capital receipts not attracting tax.