• Home
  • Income Tax
    • Wealth Tax
  • Service Tax
  • VAT
  • GST
  • Central Excise
    • Custom Duty
  • Sales Tax
  • Professional Tax
  • Blog

Tax Queries

One Stop Solution for all Tax Related Queries In India

Home » Blog » Income Tax » Income From Other Sources

Income From Other Sources

The Income which is not Chargeable to Tax come under this head Income From Other Sources. Here other sources of Income includes income, profits and gains from the total income of Assessee. It is one of the five heads of Income Tax.

The following conditions which must satisfy under the residuary head of Income:

  • This income should not be exempt under the IT Act 1961.
  • There must exist an income.
  • This income shall not be charged to tax if it is under the other heads of income like House property, Salary, Capital Gains, and Business or Profession.

These are some of the examples which are taxable under this head Income from Other Sources:

  • Company deposits or Interest on bank deposits.
  • The pension which is received by legal heirs of an employee.
  • Income obtained from Dividend under that is covered by Sections 2(22)(a) to (e).
  • The income received from an agricultural land situated outside the Country.
  • Income from sub-letting of house property by a tenant.
  • Salary received by the Members of Parliament.
  • Receipts of non-recurring nature and on Casual receipts.
  • Interest received on delayed refunds from IT Department.
  • Commission obtained on Insurance.
  • Interest on securities.
  • Examiner-ship fees received by a teacher but not received from an employer.
  • Income obtained from Crossword Puzzles, Winnings from Lotteries, Card Games, and Horse Races.
  • Income from royalty.
  • Income obtained from furniture, plant or machinery, etc.
  • Any sum more than Rs. 50,000/- received without consideration shall be treated as income provided that the sum of money is not received from any relative/ on the occasion of the marriage of the individual/ under inheritance or a will etc.

Calculation of Income from Other Sources

This the process used for the Computation of Income from other sources

  • Includes Expenditure incurred in the previous year.
  • Expenditure incurred exclusively and wholly for the purpose of earning the income.
  • Under Section 57 of the IT Act, 1961 the deductions and After deducting allowances are incurred.

After Disallowing these following:

  1. Personal Expenses related to Expenditure.
  2. Salary, Interest that is payable outside India on which Tax Deducted at Source (TDS) not made.
  3. Wealth Tax/ Income Tax paid excessive payments to relatives etc.
  4. Spending Funds in respect of Technical fees and royalty fees received by a foreign company.
  5. An amount spent in respect of winning from the Lottery, Horse Races and Card Games, etc.

Expenditure allowed as Deductions for computing income under head Income from Other Sources:

  • Deductions are available under Section 57(i) that is Remuneration or Commission for realising interest or dividends on securities.
  • Insurance Premium, Current repairs and depreciation in respect of Machinery, Furniture, Building, and Plant that are chargeable to tax under section 56(2)(ii)/(iii) are deducted.
  • An amount of Rs 15,000 or 33.5% is deductible if the source of income is through a family pension.
  • The Deduction is available on any other expenditure if it is not in the nature of capital expenditure.
  • If the taxpayer receives any sum as a contribution towards any welfare fund from his employee’s then such amount is allowed if it is credited to the employee’s account in the relevant fund by the taxpayer before the due date.

Amount not allowed as Deduction

The amounts that are not allowed as deduction is clearly mentioned in Section 58 under head Income From Other Sources. The expenditures which are not considered as a deduction are given below.

  • Any Interest, which is payable outside India on which tax at source is chargeable under Act, is not deductible.
  • Any expenditure spent for personal uses of the assessee will be not deducted.
  • The Sum, which is paid on wealth tax, is not deductible.
  • According to Section 40A, any amount is not deductible while computation of income under the head Income From Other Sources.
  • Spending Funds in respect of winnings from lottery, Card games are not deductible.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ASK CA Experts

From Hyderabad
CA Office (ACA)
Ph: 9441441477
From Vijayawada

Categories

  • Central Sales Tax
  • Custom Duty
  • Excise Duty
  • GST
  • Income Tax
  • Income Tax Queries
  • Service Tax
  • Service Tax Queries
  • VAT
  • VAT Queries

Latest Income Tax Articles

  • PAN Card Correction | How to do Correction in PAN Card?
  • New PF Withdrawal Form | Download Form 19 UAN, Form 10C UAN & Form 31 UAN
  • Know Your PAN Card Number by Name and DOB | Pan Card Status Online
  • Professional Tax Calculator | Online Profession Tax Calculator
  • HRA Exemption Calculator | HRA Calculation Online
  • Online PPF Return Calculator | PPF Calculation India
  • Income Tax Calculator | How to Calculate Income Tax in India – Online Tax Calculation
  • Online EPF Withdrawal Process – EPF Withdrawal Forms
  • Professional Tax Slab in Maharashtra | Maharashtra Professional Tax Slab Rates
  • Karnataka Professional Tax | Professional Tax Karnataka Slab Rates
  • EPF Balance Enquiry | Know Your PF balance | EPF Account Status Check
  • Income Tax Calender for FY 2016-17 | Income Tax Due Dates
  • Income Tax Slab for FY 2017-18 (AY 2018-19)
  • Union Budget 2017-2018 Updates | Highlights of Union Budget 2017-18
  • Long Term Capital Gain Tax | Computation, Exemption
  • UTI PAN Card Status Tracking | UTI PAN Card Application Form 49A, 49AA
  • Short Term Capital Gains Tax | Exclusions, Rates, Computation
  • How to Calculate Income Tax on Salary? (With a Example)
  • TCS on Sale of Motor Vehicle w.e.f 1 June 2016 | TCS Provisions, FAQ’s
  • TCS Amendments in Budget 2016 w.e.f June 1, 2016 | TCS Rates for AY 2016-17

Latest Income Tax Queries

  • Income Tax Return in case of Loss | Filing Return of Loss
  • TDS applicability on Internet Charges, Leased lines – Sec 194J, 194C
  • Income Tax paid but Return not Filed
  • How Can I Save Tax on My Salary in India | Tax Saving Tips
  • Wrong Assessment Year while paying Income Tax – Rectification
  • Dearness Allowance in India | Dearness Allowance Calculation
  • what is Digital Signature Certificate | Income tax e-filing
  • Revised Income Tax Return – How to file Revised Return
  • How to Allot UIN (Unique Identification Number) for Form 15H or 15G | UIN Status
  • How to Track Income Tax Refund | Income Tax Refund Status
  • PAN Card Cancellation | Online Cancellation of PAN
  • Capital Gain on Sale of Agriculture Land
  • Section 54 – Exemption for Capital Gains
  • Section 54F – Capital Gains From the Transfer of Residential House Property, Capital Gain Exemption of Any Property
  • TDS Return – Procedure, Due Dates, TDS Return Forms, e Filing of TDS Return
  • Which ITR form should be used | ITR Forms
  • TDS Challan | Mistakes and Corrections
  • Dividend Distribution Tax Rate – Calculation
  • Section 194J – TDS on Professional Fees or Technical Services Fees
  • Tax Benefit on Health Insurance Policy – Section 80D

Recent Articles

  • PAN Card Correction | How to do Correction in PAN Card?
  • New PF Withdrawal Form | Download Form 19 UAN, Form 10C UAN & Form 31 UAN
  • Know Your PAN Card Number by Name and DOB | Pan Card Status Online
  • Professional Tax Calculator | Online Profession Tax Calculator
  • HRA Exemption Calculator | HRA Calculation Online
  • VAT Calculator India | Online VAT Calculation
  • Online PPF Return Calculator | PPF Calculation India
  • Service Tax Calculator India | ST Calculator Online
  • Income Tax Calculator | How to Calculate Income Tax in India – Online Tax Calculation
  • Online EPF Withdrawal Process – EPF Withdrawal Forms

DISCLAIMER

All content provided on this www.taxqueries.in site is for informational purposes only. The owner of this site makes no representations as to the completeness or accuracy of any information on this site or found by following any link on this site.

The owner of www.taxqueries.in will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.