A Separate Block of Income refers to specific categories of income that are taxed at special fixed rates, outside the normal taxable income.
These incomes are not combined with normal income for slab-wise taxation.
Common items under this head include capital gains on securities, capital gains on immovable property, and dividend income.
Prize bond winnings, lottery winnings, and certain windfall gains also fall under separate block taxation.
Tax on these incomes is usually final tax, meaning no further adjustment or deduction is allowed.
