What is deemed income under Indian Income Tax laws?

Deemed income refers to certain types of income that are taxable even if they are not actually received by the taxpayer. Under Indian Income Tax laws, certain receipts or benefits are considered as ‘deemed income’ and are taxed in the hands of the recipient. Some examples of deemed income include: rent-free accommodation, interest on securities, cash vouchers, dividends from domestic companies, and capital gains on transfer of certain assets. The tax liability arises on the deemed income, irrespective of whether it is actually received or not.