Source Rule Law and Legal Definition

Source Rule is the provision in the national law of a country or in a tax treaty which defines the concept of source for a particular type of income.

Source of Income is the place or country where a particular item of income is deemed to originate or where it is deemed to be generated. National rules vary, depending on which concept of source is used.

Source of Income may also be explained as under which head a particular item of income is deemed to originate. For example, income from business, income from salary etc.