Income From Other Source - Income Tax

Course Content and Descriptions:

Income from Other Sources (Section 56)

Meaning of Income from Other Sources

Examples of Incomes taxable under the head other sources :

(1) Income from Dividend.

(2) Casual Income; Example:- Lottery, crossword, race, cards, betting, horse race etc. Note – 13 Indian states have legalized the lottery including Assam, Arunachala Pradesh, Goa, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim and West Bengal. Lottery is illegal in the other 15 India states.

(3) Interest on Securities.

(4) Interest received on purchase of National Saving Certificate VIII issue.

(5) Interest on reinvested Interest on NSC.

(6) Interest received on securities of Co-operative Society

(7) Other types of Interest, except Interest on Securities; example : Interest on FD/ Saving Deposit, Interest received on Loan etc.

(8) Interest on Securities of Foreign Government.

(9) Remuneration received as examiner of examination to any Teacher/ an Advocate or Professional Person.

(10) Income received from Royalty.

(11) Income of bricks making from Land.

(12) Fee, Allowances and other remuneration received to a Director of a company by the company.

(13) Commission received to a person for the sale of shares of a company

(14) Income received from hat or markets.

(15) Undisclosed investment, money or jewellery, income from undisclosed sources.

(16) Income received from writing articles in magazine and news papers

(17) Salary of MP/MLA.

(18) Income from agricultural land situated outside India or Income from Foreign Agricultural Land.

(19) Income from subletting of house property fully or partially by the tenant having house on rent.

(20) Interest received on UPF only on those parts which is contribution of employee.

(21) Income from rent of land or property kept on lease.

(22) Insurance Commission, which is not taxable under the head PGBP.

(23) Income from letting out trademark.

(24) Rent received out of machine, plant or furniture together with the rent of Building.

(25) Income from fishing area.

(26) Amount of gratuity received to legal representative after the death of non government employee.

(27) Interest on refund of Income Tax.

(28) Tip or prize received to a person as waiter or taxi driver from another person who is not his employer.

(29) Family pension.

(30) Commission received to a director in exchange of giving guarantee to the Bank for the Loan to the Company.

(31) Income of Indian cricket players.

(32) Interest on compensation (50% taxable).

(33) Advance money forfeited, received in the course of negotiations for transfer of a Capital Asset.

Bonds Washing Transactions

Rules of Gross up of various Interest

Gift section 56 (2) (x) and Money

Moveable Property

Family means in Gift

Exception  :

1 Relative 

2 His marriage

3 Will or inheritance

4 Contemplation of death

5 Local authority section 10(20)

6 Notified award , reward section 10(17A)

7 Scholarship section 10(16)

8 University or educational institution or Hospital or medical institution or Trust section 10(23C)

Interest on Securities

Meaning of Securities

Types of Security :

1. Government Security

2. Non-Government Security

List of Tax Free Government Security

Many Practical problems and Many Illustration with solution for better understanding.