DEDUCTION [U/S 80 C] [with effect
LIP; (restricted to 20%
of capital sum assured)
of self, spouse, children
(including minors) or
members of HUF.
(a) PF, (b) Superannuation
Fund, (c) PPF; (d) RPF
PF contribution not to exceed
1/5th of salary.
Deposits in P.O.
Savings Bank (CTD).
Land cost for
residential house is
Subscriptions to NSC VIII Issues. Term Deposit mentioned
at Point 15 would be for a fixed period of not less than five
years and as per scheme to be notified by Central
Investments in shares or debentures of approved public
company exclusively engaged in infrastructure facility or
Tuition Fees (not donation or development fees) towards
full time education of any 2 Children of an Individual paid
to University, College, School, etc. in India.
Deduction amount: Rs. 1,00,000
DEDUCTION [U/S 80 CCC]
out of taxable
income to LIC or
to any other
DEDUCTION [U/S 80 DD]
• For meaning of the word 'disability' reference is to be
made to Sec 2(i) of the Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full
Participation) Act, 1995 (PDEOPRFP), and section
2(a), (c) and (h) of the National Trust for Welfare of
Persons with Autism, Cerebral Palsy, Mental Retardation
& Multiple Disabilities Act, 1999 (NTWPACPMR MD
Act). Disabilities covered are blindness, low
vision, leprosy-cured, hearing impairment, locomotor
disability, autism, cerebral palsy, multiple
disability, mental retardation and mental illness.
• Deduction amount: Rs. 50,000
DEDUCTION [U/S 80 E]
• Repayment (out of taxable income) of interest
on loan taken for pursuing higher education
• The entire amount of interest is deductible
without any limit .
• Deduction amount: Rs. 40,000
DEDUCTION [U/S 80 U]
Income of a person, with disability
To help disable person by reducing his tax by their section has been
The Assesse is an individual with disability.
Certificate from Medical Authority in the form and manner
Deduction amount: Rs. 50,000
DEDUCTION [U/S 80 CCD]
Individual who is a Central
employee, employed on or
made by the
by the Central
to the notified
Amount contributed by the
assessee and/or the Central
Government as does not
exceed in each case 10% of
INCOME FROM OTHER SOURCES
• INTRODUCTION :
• “Income from Other Sources” is a residuary head of income.
Any item of income chargeable to tax but does not fall
within the ambit of the other four specific heads of income
shall be included under this head of income.
• Any income received as rent from hiring of Plant & Machinery or
from furniture belonging to the assessee will be taxable under the
head Income from other sources if it is not taxable under business
income. For instance, a car rental company's income would be
taxable as its business income. However, if a person who has no
need for a car rents out the same to his friends on weekends, then
the income for such idle-period letting would be taxable as Income
from Other Sources.
• There are some incomes, which are exempt, while others
are taxable. The taxability of Income is either under the
head salary, house property, business income or capital
gain. All of these heads of income are mentioned under
section 16 of the income tax act. You have read about
these income heads in the previous lessons.
• The incomes, which are neither covered under the above
heads of salary, house property, business income, or
capital gain, are covered in the head of income from
other sources. This head of income is a residual head
because it tries to cover all other incomes which are
uncovered and which are not exempt from tax.
• Deductions available against this
income, include, repairs, insurance and depreciation on
plant, machinery, furniture, etc.
• After going through this lesson you will be able
to understand the various incomes, which are
included in the income from other sources. Also
you will be able to understand how income from
dividend, income by way of interest is taxed and
the concepts of grossing and net.
BASIS OF CHARGE(SEC 56) :
• BASIS OF CHARGE(SEC 56) Any income which
does not cover any other head of income. Eight
other income which are always taxable on the
head of other sources.
SPECIAL PROVISION :
• SPECIAL PROVISION Dividend Lottery
Employees contribution to words staff welfare
scheme. Interest on securities. Rental income of
machinery ,plant and furniture. Rental income
of letting out of plant ,machinery or furniture
along with letting out of building and the two
meetings are not seprable. Sum received under
keyman insurance policy Gift. Interest on
compensation or enhanced compensation.
BROAD CONCLUSION :
• BROAD CONCLUSION Income can be invoked
only if all the following conditions are satisfied.
There is a income Income shall not be exempted.
not covered by other head.
• Under section 2(22) it is inclusive definition.
Distribution of accumulated profit entailing
release of company asset sec 2(22)a.
Distribution of accumulated profit in the form of
debuntre,debuntre stock sec 2(22)b.
Distribution at the time of liquidation.2(22)c
Distribution of profit on the reduction of capital
2(22)d Distribution of accumulated profit by
way of loan or advance.sec 2(22)e
Interest on securities sec.56(2)id :
• Interest on securities sec.56(2)id Means-
Interest on any securities of the CG or SG.
Interest on debenture or other securities for
money issued by or on behalf of a local authority
or a company or a corporation established by a
central ,state or provincial act.
Interest exempted from tax
• Interest exempted from tax sec.10(15) Interest
on notified securities bond or certificate. Interest
on notified relief fund. Interest on deposit for
Bhopal gas victim. Interest on gold deposit bond
issued under the scheme of gold deposit 1999.
Interest on notified issued by local authority or
by state pooled finance entity applicable from
the AY 08-09.
Receipt without consideration is
treated income sec.56 (2)vi(vii)
• Receipt without consideration is treated income
sec.56 (2)vi(vii) A receipt of money without
consideration is chargeable to tax if he satisfy
these conditions. Received by any individual or
HUF. Received on or after 1-10-2009. It does not
fall on the exempted category. Fall on the
• Five category Aggregate amt exceed 50k but on
or after October 1 2009 . Any immovable
property is received on or after 1-10-2009 and
stamp duty except road 50k. Immovable
property for a consideration which is less than
the stamp duty. Movable property without
consideration. Movable property for a
consideration less than fair market.
• If the employer receives any money from his
employees towards Provident Fund or
Superannuation Fund or any other fund towards the
welfare of its employees, then the same will be
taxable under the head Income from other sources if
it is not taxable under business income.
• Any sum credited by the assessee to the employee's
account in the relevant fund, on or before the date
by which the employer is required to credit the
employee's contribution under any Statute or
Order, would be allowed as a deduction to the
RENTAL INCOME ON HIRING OF
PLANT,MACHINERY OR FURNITURE
• Any income received as rent from hiring of Plant &
Machinery or from furniture belonging to the
assessee will be taxable under the head Income from
other sources if it is not taxable under business
income. For instance, a car rental company's income
would be taxable as its business income. However, if
a person who has no need for a car rents out the
same to his friends on weekends, then the income
for such idle-period letting would be taxable as
Income from Other Sources.
• Deductions available against this
income, include, repairs, insurance and depreciation
on plant, machinery, furniture, etc.
Deduction are permissible
• Deduction are permissible Commission or
remuneration for realizing dividend or interest
on securities. Deduction in respect of employees
contribution toward staff welfare scheme 57(ia).
Repair ,depreciation in the case of letting of
plant ,machinery ,furniture building. Standard
deduction in the case of family pension. Any
other expense for earning income.
• Specific disallowance Following amounts are not
deductible while computing income- Amount
deductible under sec.58 Personal expense.
Interest. salary. Wealth tax. Amount specified by
sec 40A Expenditure in respect of royalty and
technical fees received by a foreign company.
Expenditure in respect of winning lotteries.