Income chargeable unde Income From other Sources Head

Friends,

Any taxable income from whatever source derived which does not specifically fall under any of the preceding four heads of income, namely, Salaries, Income from house property, Profit and gains of business or profession and Capital Gains shall be assessed and brought to charge under section 56 under the head ‘Income from other source’.

Types of income chargeable under the head ‘Income from other sources’ [Sec 56 (2)]:

The following income shall be chargeable to income tax under the head ‘Income from other sources’:

1. Dividends;
2. Any winnings from lotteries, crossword puzzles, races including horse-races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever ;
3. Any sum received by the assessee from his employees as contributions to any provident  fund or superannuation fund or any fund set up under the provisions of the Employees’ State Insurance Act, 1948 or any other fund for the welfare of such employees, if such income is not chargeable to tax under the head ‘Profits and gains of business or profession’;
4. Income by way of interest on securities, if the income is not chargeable to tax under the head ‘Profits and gains of business or profession’;
5. Income from machinery, plant or furniture belonging to the assessee and let on hire, if such income is not chargeable to tax under the head ‘Profits and gains of business or profession’;
6. Income by way of letting on hire of machinery, plant or furniture along with the building if the letting of building is inseparable from the letting of the said machinery, plant or furniture, if such income is not chargeable under the head ‘Profits and gains of business or profession’;
7. Income by way of any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy, if the same is not chargeable under the head ‘Profits and gains of business or profession’ or under the head ‘salaries’;

Where any some of money exceeding Rs. 50,000 is received by an individual or a Hindu Undivided Family without consideration from a specified person on or after 1^st April, 2006. The whole of such sum of money is not received-

• From any ‘relative’;
• On the occasion of the marriage of the individual;
• Under a will or by way of inheritance;
• In contemplation of death of the payer;
• From a local authority;
• From any fund , foundation, university, other educational institution, hospital, other medical institution, any trust or institution referred to in Sec 10 (23C)
• From a trust or institution registered under section 12 AA

Thus, from the above discussion one can have a clear cut view about the type income which comes under the head of ‘Income from other sources’. The category includes almost every sort of income which arises out of uncommon incidents in one’s life and like other common incomes it is also taxable.

Don't Download any thing before free Registration on the TOP of this site and check your Inbox for clicking on activation link of Feed Burner.