Income from Other Sources - Other Source Income | Deduction in other sources income

Income from Other Sources

Hello friends,

Today we have again brought to you an important title related to different types of income, which is income from Other Sources, then know about income from Other Sources-

Income from other sources is the last and fifth head of income. Sections 56 to 59 of the Income-tax Act are in relation to this head of income. As per section 56(1), every kind of income which is to be included in the total income under this Act but is not taxable in the first four heads of income mentioned in section 14, under the head 'Income from other sources' will be taxable.

Included in the head 'Income from other sources

Some of the major incomes under the heading 'Income from Other Sources' are as follows-

1.     Income from dividend (dividend received from Indian company, mutual fund and UTI is tax-exempt from the assessment year 2004-05).

2.     Casual income; such as-lottery, square puzzles, races, card games, betting, horse racing etc.

3.     Interest on securities provided the taxpayer does not carry on the business of buying and selling of securities

4.     Interest received on purchase of National Savings Certificate VIII; Interest on re-appropriation of National Savings Certificate interest.

5.     Interest received on the securities of the co-operative society

6.     All interest other than interest on securities; For example, interest received on bank fixed deposit or savings account, interest received on loan, etc.

7.     Interest on securities of a foreign government or foreign entity to any teacher or lecturer.

8.     Remuneration received as an examiner of an examination (from an institution other than an employer)

9.     Income from royalty

10. Income from lifting the land for brick kilns

11. Fees, allowances and perquisites and any other remuneration received by the director of the company from the company Income from haats and markets

12. Income from undisclosed investments, money and jewelry or undisclosed sources

13. Received by writing articles in newspapers and magazines.

14. Salary of a Member of Parliament or Legislator.

15. Income from agricultural land located outside India i.e. foreign agricultural land

16. Income from sub-letting, wholly or in part, by the tenant to let the house-property

17. That part of the interest received from the unproven provident fund which accrued on the employee's contribution

18. Commission received by the director on the shares of the company

19. Under section 80CCA, the amount received (including principal and interest) on withdrawing the amount deposited in the National Saving Scheme in whole or in part.

20. Income of any other person under section 60 to 64 which is to be included in the total income of the taxpayer.

21. Rent of land or income from leased property

22. Insurance commission not taxable in the head of profits of business or profession

23. Income from the rental of a trademark

24. Any annuity received under a will, excluding an annuity received by an employee from his employer

25. Rent received by the taxpayer on leasing his machine, plant and furniture as well as building on rent if the machine, plant and furniture cannot be separated from the building provided this income is taxable under the head Profits of business or profession- not eligible

26. Gift received without consideration Section 56(2).-If any person or Hindu undivided family received in the previous year from any other person or persons a sum of Rs. 50,000 in cash, immovable property, movable property after 30.09.2009, then such non-receipt of consideration will be treated as income from other sources for the taxpayer.

Exception- Any amount received on gift will not be taxable in the following situations and will not be included in the calculation of maximum limit of 50,000

1.     If the money is received as a gift from a close relative. Relatives include spouses, parents, siblings, uncles, aunts, parents of spouses, siblings of spouses, ancestors or descendants of the individual, ancestors or descendants of spouses, etc.

2.     Gift money received from relatives or outsiders on the occasion of marriage.

3.     Amount received as a result of succession or will.

Deductions allowed in computing taxable income under the head 'Income from other sources'.

In respect of machinery, furniture, and house property which has been let out, deduction of the amount actually spent on depreciation, insurance, repairs, etc. is allowed.

The amount of interest paid on the amount of loan taken to earn income under this head Recovery expenses of interest, dividend, etc.

Any expenditure incurred in connection with the measurement of this income, but such expenditure should not be of a capital nature.

One-third of the pension out of a family pension or Rs.15,000.