Dividends, Winning from Lotteries, Interest on Securities, Keyman Insurance Policy, subletting of house property, family pension, interest on bank deposit, interest on loan given, rent from vacant plot of land, agriculture income, interest on income tax refund, post office saving certificates, gift, gift received from relatives,

1. Income from Other Sources
Presentation
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2. Income Chargeable Under The Head “Income From Other
Sources”
1. Dividends
2. Winnings From Lotteries, Crossword Puzzles, Horse Races, Card Games,
Other Games Of Sort, Gambling, Betting Of Any Form Or Nature.
3. Recovery Of PF And Welfare Fund Contributions From Employee By Employer.
4. Interest On Securities.
5. Income From Machinery, Plant Or Furniture Let On Hire.
6. Sum Received From Keyman Insurance Policy.
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3. Income Chargeable Under The Head “Income From Other
Sources”
7. Income From Sub-letting Of A House Property.
8. Casual Income And Non-recurring Income.
9. Insurance Commission.
10. Family Pension.
11. Director’ Sitting Fee.
12. Interest On Bank Deposits.
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4. Income Chargeable Under The Head “Income From Other
Sources”
13. Deposits With Companies.
14. Interest On Loans.
15. Income From Undisclosed Sources.
16. Remuneration Received By Members Of Parliament.
17. Examinership Fees From Non-employer.
18. Interest From URPF On Employees Contribution
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5. Income Chargeable Under The Head “Income From Other
Sources”
19. Rent From Vacant Plot Of Land.
20. Agricultural Income From Land Situated Outside India.
21. Interest On Income Tax Refunds.
22. Income From Royalty, Not Taxed Under Business Or Profession.
23. Guarantee Commission To Directors.
24. Director’s Commission For underwriting Shares.
25. Gratuity Received By A Director Not As An Employee.
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6. Exempted Income U/S 10(15)
1. 12 Year National Saving Annuity Certificates.
2. Treasury Saving Deposit Certificates.
3. Post Office Cash Certificates.
4. National Plan Saving Certificates.
5. Post Office National Saving Certificates.
6. Post Office Saving Certificates.
7. Post Office Cumulative Time Deposits.
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7. Exempted Income U/S 10(15)
8. Scheme Of Fixed Deposits Governed By The Govt. Savings Certificates Rules
1968.
9. Scheme Of Fixed Deposits Governed By The Post Office Rules 1968.
10. 10.5% Tax Free Bonds Issued By The HUDCO.
11. Interest Payable By A Public Company Registered In India With The Main
Object Of Providing Long Term Finance For Purchase Or Construction Of
Residential Houses
12. Nri Bonds – 1988 Issued By State Bank Of India.
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8. Exempted Income U/S 10(15)
13. 9.25% Tax Free Bonds Issued By Rural Electrification Corporation Ltd.
14. 10.5% Secured, Redeemable, Non-convertible Tax-free Bonds Issued By NHPC
Ltd.
15. Interest On Gold Deposit Bonds Issued Under The Gold Deposit Scheme 1999
Notified By The Central Government.
16. Interest On Bonds Issued By A Local Authority And Notified By Central Govt.
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9. Deduction U/S 57
1. Any Reasonable Sum Paid By Way Of Commission Or Remuneration For
Purpose Of Realising Dividends. (Other Than Dividend From Indian Co.)
2. Contributions To ESI, EPF And Superannuation Fund Paid Before Due Dates
Under Relevant Acts.
3. Repairs, Insurance And Depreciation On Assets Let Out.
4. For Family Pension 1/3 Or Rs. 15,000 Whichever Is Less.
5. Any Other Expenditure (Not Being Capital Expenditure) Expended To Earn
Such Income.
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10. Deduction Not Available U/S 58
1. Personal Expenses Of An Assessee.
2. Any Interest Paid Outside India, On Which Tax Has Not Been Deducted At Source.In Such
Cases Interest Paid Or Payable Will Not Be Allowed As Deduction.
3. Any Amount Of Taxable Salary, Paid Outside India Without Deduction Of Tax At Source Or Not
Has Been Paid Thereon, Will Not Be Allowed As Deduction.
4. Any Expenditure Or Allowance In Connections With Income By Way Of Any Winnings From
Lotteries, Crossword, Puzzle, Races Including Horse Races, Card Games Or Any Other Games
Of Any Sort Or Form Of Gambling Or Betting Of Any Form Or Nature Will Not Be Allowed As
Deduction. However In Case Of Income From Horse Races, The Expenditure Incurred To
Maintain The Horses Shall Be Allowed As Deduction To The Assessee Being The Owner Of
The Horses Maintained By Him For Running In Horse Race.
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11. Important Points
1. Dividends From Indian Company Is Exempted.
2. Income From Other Sources U/S 56 Is To Be Assessed As Per Accounting
Method Adopted By The Assessee i.e. Cash Or Accrual etc.
3. Bonus Shares Received Are Not Taxable As Dividend In The Hands Of Equity
Shareholder.However When They Are Sold, Tax On Capital Gain Is Payable.
4. Award like “best surgeon” “best lawyer” i.e. Excellence in service from an
institution which has interest in his profession – exempt u/s 10(3).
5. Income from lotteries/ dividend etc. To be taken at gross amount i.e. (Net +
TDS )
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12. Important Points
6. Following Receipts Are Not Taxable As Income,
a. Withdrawal From PPF On Maturity Of Policy Or Before.
b. Refunds Form Lic On Maturity Of Policy Or Survival Benefit.
c. Gifts From Friends/Relatives (Purely Of Personal Nature). Subject To
conditions.
d. Awards In Public Interest.
e. Income Tax Refund (But Interest On Refund Is Taxable)
f. Compensation For Personal Injury Like Loss Of Hand.
g. Awards Received By A Non-professional Sports Man Is Gift.
h. Savings Made By House Wife From Monthly Amount Paid By Husband.
i. Receipts From Huf.
j. Share Of Profit In Firm.
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13. Important Points
7. In case of NSC/KVP/IVP the interest is taxable on accrual basis as income of
the respective year over the period of securities as per the table announced
by the government so in the year of maturity only that years interest is
taxable.
8. Person having income from other sources can choose “method of
accounting” for the tax purpose.
9. Gifts are not incomes.
10. Income From Certain Units Of UTI Or Mutual Funds is Fully Exempt U/S 10(35)
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14. Gift {i.e. Receipts Without Consideration u/s 56(2)(v)}
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Where any sum of money or property received during the year without consideration by an
individual or an HUF from any person on or after 1-10-2009 are taxable under the head
“income from other sources”.
Nature of Asset Particulars Taxable Value
Money Without
Consideration
The whole amount, if exceeds Rs.50,000
Movable
Property
Without
Consideration
The fair market value, if exceeds Rs.50,000
Movable
Property
Inadequate
Consideration
The difference between the fair market value and the
consideration, if exceeds Rs.50,000
Immovable
Property
Without
Consideration
The stamp duty value, if exceeds Rs.50,000
Immovable
Property
Inadequate
Consideration
The difference between the stamp duty value and the
consideration, if exceeds Rs.50,000

15. Gift {i.e. Receipts Without Consideration u/s 56(2)(v)}
Condition for applicability,
1. The recipient is an individual or a hindu undivided family.
2. For any sum of money exceeding Rs.50,000.
3. For any movable property, the fair market value exceeding Rs.50,000.
4. For any immovable property, the stamp duty value exceeding Rs.50,000
5. Gift must not be in kind.
Tax treatment,
If the above conditions are satisfied, the whole of such sum received by the
individual/HUF will be taxable u/s56(2)(v) under the head “IFOS”.
Property includes, land, building, share and securities, jewellery, drawings,
paintings, sculptures, any work of art.
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16. Gift {i.e. Receipts Without Consideration u/s 56(2)(v)}
Exceptions,
Section 56(2)(v) Does Not Cover The Following, If Any Sum of Money or Property
Received:
1. From Any Relative,
Relative Here Means –
➢ Spouse Of The Individual
➢ Brother Or Sister Of The Individual
➢ Brother Or Sister Of The Spouse Of The Individual
➢ Brother Or Sister Of Either Of The Parents Of The Individual
➢ Any Lineal Ascendant Or Descendant Of The Individual
➢ Any Lineal Ascendant Or Descendant Of The Spouse Of The Individual
➢ Spouse Of The Person Referred To In Clauses (ii) To (vi)
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17. Gift {i.e. Receipts Without Consideration u/s 56(2)(v)}
Exceptions,
2. On The Occasion Of The Marriage Of The Individual (Whether Gift Is Received
From Relative Or Outsiders).
3. Under A Will Or By Way Of Inheritance.
4. In Contemplation Of Death Of Payer or Donor.
5. From Any Local Authority
6. From Any University/Educational Institution/Charitable Trust.
7. Any Sum Of Money Not Exceeding Rs.50,000
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18. Tripathi Online Educare
Q.1) From the following information, compute “Income from Other Sources”, of Mr. Dilip.
a. Income from agricultural land in India - Rs.12,000.
b. Income from agricultural land in Nepal - Rs.10,000.
c. Mr. Dilip is a tenant of Mr. Sunil in respect of a bungalow in Goa. Mr. Dililp has in turn rented the
Bungalow to Kapil for a rent for Rs.1,000 per month. Dilip pays rent of Rs.500 per month Sunil.
d. Interest earned
i. Interest on deposits with banks Rs.500.
ii. Interest on public provident fund Rs.1,000.
iii. Interest on Government Securities Rs.12,000 (Net); Tax Deducted at Source Rs.1,200.
e. Lottery Prize Rs.50,000 (Net). Tax deducted at source Rs.20,000. He had purchased lottery tickets worth
Rs.3,000.
f. He received a refund of Rs.2,500 (Income Tax Rs.2,000 and Interest Rs.500) from the Income tax
department pertaining to the assessment year 2015-16.
Solution:
Name of the Assessee : Mr. Dilip
Assessment Year : 2016-17
Previous Year : 2015-16
Status : Individual
Residential Status : R & O.R.
Pan No. : ________

19. Particulars Rs. Rs.
1. Income from agricultural land in India 12,000
Less: Exempt u/s 10(1) 12,000 NIL
2. Income from agricultural land in Nepal 10,000
3. Rent from subletting to Kapil (1000 x 12) 12,000
Less: Rent paid (500 x 12) 6,000 6,000
4. Interest on:
a. Bank Deposits 500
b. PPF 1,000
Less: Exempt u/s 10(11) 1,000 NIL
c. Government Securities (Net) 12,000
Add: T.D.S 1,200 13.200 13,700
5. Lottery Prize:
Net 50,000
Add: T.D.S 20,000 70,000
6. Interest on Income tax refund 500___
Income from Other Sources 1,00,200
Note:
1. Expenses on purchasing lottery tickets are not deductible.
2. Refund of Income tax is a capital receipt hence not taxable.
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Computation of Income from Other Sources

20. Thank You!
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