This document discusses income from other sources under Section 56 of the Indian Income Tax Act. It provides that any income not chargeable under other heads such as salary, house property, business, or capital gains is taxed under income from other sources. Specific incomes listed in Section 56 that are included are dividends, interest, winnings from gambling/games/races, machine rental income, and keyman insurance policy proceeds. The document also lists some incomes not specified in Section 56 but still taxed under this head, such as subletting income, bank interest, agricultural overseas income, plot rental, mining payments, casual income from a will/trust, MP salaries, undisclosed sources income, and director gratuities. The

1. Income from Other
Sources

2. Basis of Charge- U/s 56
General Provision- Section 56 (1)
Income of every kind which is not to be
excluded from the total income under this
Act shall be chargeable to income-tax under
the head Income from other sources, if it is
not chargeable to income-tax under any other
of the heads such as
1) Salaries
2) House Property
3) Profit/ Gains from Business
4) Capital Gains

3. Following incomes are specifically mentioned in the I .T. Act U/s 56,
which are included in the income from other sources:
Plan
1. Dividend
2. Interest on securities if not chargeable under the
head business or profession.
3. Wining from lotteries, crossword puzzles, races
including horse races, card games and any other sort of
games or gambling or betting of any form.
4. Income from machine, plant or furniture let on hire.
5. Income from machinery, plant, or furniture along with
building and letting thereof is inseparable.
6. Any sum received under a key-man insurance policy
including bonus if not taxable as salary or business
income.

4. INCOMES NOT SPECIFIED IN
SECTION 56
• Following incomes are not mentioned in the Income Tax Act
but are to be charged to tax. Therefore, these incomes are
also included in the head of income from other sources.
1. Income from subletting
2. Interest on bank deposits and loans and securities.
3. Agricultural income from a place outside India.
4. Rent of plot of land
5. Mining rent and royalty.
6. Casual income under a will, contract, trust deed.
7. Salary payable to a member of parliament.
8. Income from undisclosed sources.
9. Gratuity paid to a director who is not an employee of a
company.
10. Any casual income exceeding Rs. 5,000.

5. CLUBBING OF INCOME(64)

6. Clubbing not applicable for:—
• 1. Income of a minor child suffering any disability
specified u/s. 80U.
• 2. Income on account of manual work done by
the minor child.
• 3. Income on account of any activity involving
application of skills, talent or specialized
knowledge and experience.
• The parent in whose hands the minor’s income is
clubbed is entitled to an exemption up to Rs.
1,500 per child.