Under the Income-tax Act, 1961, certain incomes are treated as income received in India even though they may not have actually been received by the assessee in India. Such income is known as “income deemed to be received in India.” The provisions relating to deemed receipt are mainly contained in Section 7 of the Income-tax Act. These provisions are important because they determine the taxability of certain amounts by creating a legal fiction that the income has been received by the assessee. The following incomes are deemed to be received in India: 1. Annual accretion to the balance of a recognised provident fund: The annual accretion by way of interest, bonus or other amounts credited to the balance standing to the credit of an employee in a recognised provident fund, to the extent it is taxable under the prescribed provisions, is deemed to be received in India. However, the amount which represents the employee’s own contribution is not treated as income merely because it is credited to the provident fund. 2. Transferred balance of recognised provident fund: Where the balance