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Income From Other Sources – in Nutshell


Income u/s 56(1)

Income u/s 56(2)

Expenses u/s 57

Exempted Incomes


1. Agricultural Income from outside India

2. Receipt from Person other than employer

3. Income from sub-letting or rent of vacant land.

4. Director’s fee/sitting fee.

5. Remuneration of delivering lectures or writing articles

6. Withdrawal from NSS  u/s 80CCA –Principal amount + interest

7. Repurchase of units u/s 80CCB—principal amount.

8. Casual incomes other than those taxable u/s56(2)

9. All types of interest except taxable u/s 56(2).

  1. Dividend from companies, and foreign co-operative society.
  2. Interest on Securities.
  3. Winning from lotteries, races, puzzles, game shows, card games, gambling, and betting.
  4. Income from letting of Plant and Machinery where it is not regular business.
  5. Income from letting of Building, along with Furniture and Plant and Machinery and rent is inseparable.
  6. Any amount deducted by employer out of employee’s salary as their contribution towards Provident Fund or ESI fund.
  7. Any amount of gift or gifts received during 2008-09 which is not exempted  u/s56(v).
  1. No deduction of         any expenditure of casual incomes, races, puzzles etc.
  2. Bank commission, collection charges.
  3. Interest on loan taken to acquire an asset whose income is taxable under this head.
  4. Depreciation and expenses on repairs, fire insurance premium, local taxes etc. relating to letout period.
  5. Amount paid by employer to provident fund or ESI authorities by appropriate date.
  6. Any other expenditure which is not a personal or a capital expenditure and is incurred to earn an income taxable under this head.

1. Interest on certain notified securities.

2. Rate of TDS for Individual, HUF, AOP [No surcharge]

3. Interest on Security issued by statutory bodies or local authority–10.5%

4. Listed Debentures–10.5%

5. Unlisted Debentures–21%

6. Bank Interest –10.5%

7. Casual Incomes – 31.5%

Card Games and T.V. game shows –31.5%

  1. Interest on Govt. Securities.
  2. In case of winning from betting.
  3. Deemed dividend u/s 2(22)©
  4. Interest on any security notified u/s 193
  5. Interest paid to an individual in a/c payee cheque for an amount not exceeding Rs.2,500 by certain companies.
  6. Dividend paid by an Indian Company if it does not exceed Rs. 2,500.
  7. Bank Interest credited or paid upto Rs.5,000.
  8. Race winning if it upto Rs.2,500.
  9. Winning from lotteries and puzzle amount if upto Rs. 5,000
  10. In case of card games and games of other soft if uptp Rs.5,000

Related Topics....'Income from Other Sources'

Scope of Income Chargeable under the head 'Income from Other Sources' (Section 56)
Taxable Incomes under the head 'Income from Other Sources' [Section 56(2)]
Taxability of Dividend Income [Section 56(2)(i)]
Winnings from Lotteries, Crossword Puzzles, Horse Races and Card Games [Section 56(2)(ib)]
Interest on Securities under the head 'Income from Other Sources' [Section 56(2)(id)]
Income from Letting Out of Machinery , Plant or Furniture [Section 56(2)(ii)]
Income from Composite Letting of Machinery, Plant or Furniture and Buildings [Section 56(2)(iii)]
Share Premium in excess of the Fair Market Value to be treated as Income [Section 56(2)(viib)]
Interest on Compensation or Enhanced Compensation [Section 56(2)(viii)]
Forfeiture of Advance Received for Transfer of a Capital Asset to be Taxed under the head "Income from Other Sources" [Section 56(2)(ix)]
Income of any person to include not only gift of money from any person(s) but also the gift of property (whether movable or immovable) or property acquired for inadequate consideration [Section 56(2)(x), w.e.f. A.Y. 2018-19]
Amount Expressly Disallowed in computing the 'Income from Other Sources' (Section 58)
Deductions Allowed in computing the 'Income from Other Sources'(Section 57)

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