Section 28

(1) The total income of an individual for any year of assessment is Total income
the taxable income less total deduction. of an
individual
(2) For the purposes of subsection (1) –
(a) taxable income is the aggregate amount of –
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(i) assessable profits from trade, business, profession or vocation
ascertained in accordance with Part V of Chapter Two of this Act,
(ii) employment income,
(iii) income from investing activities,
(iv) profits or income from any other source, and
(v) chargeable gains from the disposal of chargeable assets.
(b) total deduction is the sum of –
(i) any loss ascertained in accordance with subsection (2),
First (ii) capital allowance in accordance with the provisions of Part I of
Schedule the First Schedule to this Act,
(iii) income of the individual that is exempt from tax under this Act,
and
(iv) income of the individual on which the tax deducted at source
under section 51 of Nigeria Tax Administration Act, 2025 is the final tax.
(3) The loss to be deducted in arriving at the total income of an individual
is –
(a) the amount of a loss incurred by the individual during the year or
preceding year of assessment in a trade, business, profession or vocation;
and
(b) the amount of loss incurred on the disposal of a chargeable asset:
Provided that –
(i) in no circumstances shall the aggregate loss deductions from income
exceed the amount of that loss,
(ii) the loss shall be deducted as far as possible from assessable profit
of a trade, business, profession or vocation of the first year of assessment
after that in which the loss was incurred, and in subsequent years until
the loss is fully recouped,
(iii) the loss incurred during any year of assessment shall be com-
puted, in accordance with the basis period contained in Part V of Chap-
ter Two of this Act, and
(iv) any loss incurred in any period from sales, disposal or any other
transaction in digital or virtual assets shall only be deductible against the
profit or gain from digital or virtual assets.
Presumptive 29. Notwithstanding any provisions of Chapter Two of this Act, where
taxation for all practical purposes, the income of a person chargeable to tax under this
Act cannot be ascertained or records are not kept in such a manner as to
enable proper assessment of income, then such person shall be assessed on
such terms and conditions as may be prescribed by the Minister on the advice
of the Joint Revenue Board in a regulation under a presumptive tax regime.
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