Calculation of Income from Other Sources

Filed Under: Tax

Any income which cannot be categorized under any other Head of income defined in Income Tax Act 1961 will be chargeable to tax under this head “Income from other Sources”. In addition, there are certain incomes which are always taxed under this residual head of income. Some of those incomes are listed below.

This income from other sources calculator is applicable for ay 2015-16 and this section as shown below would appear in shecule OS of form ITR-2 or ITR 2-A to be submitted as Income tax Return for Assessment Year 2015-16 by Individuals and HUFs not having Income from Business or Profession. Before using this calculator, it is recommended to check out the Notes on Income from other Sources to understand the computation.

Taxable Income from Other Sources Calculator

Calculation of Income from Other Sources Taxable under Indian Income Tax Act 1961
1 Income
a Dividends, Gross
b Interest, Gross
c Rental income from machinery, plants, buildings, etc., Gross
d Others, Gross (excluding income from owning race horses)Mention the source
i Winnings from lotteries, crossword puzzles etc.
ii
iii
iv Total (1di + 1dii+ 1diii)
e Total (1a + 1b + 1c + 1div)
f Income included in ‘1e’ chargeable to tax at special rate (to be taken to schedule SI)
i Winnings from lotteries, crossword puzzles, races, games, gambling, betting etc (u/s 115BB)
ii Any other income chargeable to tax at the rate specified under Chapter XII/XII-A
iii FOR NON-RESIDENTS- Total amount of Income chargeable to be taxed under DTAA
iv Income included in ‘1e’ chargeable to tax at special rate (1fi +1fii + 1fiii)
g Gross amount chargeable to tax at normal applicable rates (1e-1fiv)
h Deductions under section 57 (other than those relating to income under 1fi, 1fii & 1fiii for non-residents)
i Expenses / Deductions
ii Depreciation
iii Total (1hi + 1hii)
i Income from other sources (other than from owning race horses and amount chargeable to tax at special rate) (1g – 1hiii) (If negative take the figure to 3i of schedule CYLA)
2 Income from other sources (other than from owning race horses) (1fiv + 1i) (enter 1i as nil, if negative)
3 Income from the activity of owning and maintaining race horses
a Receipts
b Deductions under section 57 in relation to (4)
c Balance (3a – 3b) (if negative take the figure to 4xi of Schedule CFL)
4 Income under the head “Income from other sources” (2 + 3c) (take 3c as nil if negative)

What is considered as income from other sources?

The following are some income considered as income from other sources. However, this list is not exhaustive and chargeability to tax under this head would depend upon a few conditions being fulfilled. In general, there must be an income which is not exempt under the IT Act 1961 and which is not chargeable to tax under any other head of income namely, “Income from Salary”, “Income from House property”, “Profits anf Gains of Business or Profession” and “Income from Capital Gains”.

  • Dividend income from any domestic company covered by section 2(22)(e) or from any foriegn company. However, dividends from any domestic company other than those covered by section 2(22)(e) are exempt from tax under section 10(34).
  • Income by way of interest received on compensation or on enhanced compensation shall be chargeable to tax under the head “Income from other sources”. A deduction of 50% of such income shall be allowed from such income. However, this income shall be charged to tax in the year in which it is received irrespective of the accounting system followed by the assessee.
  • Winnings from any game of chance including lotteries, card games, races including horse races, crossword puzzles, gambling or betting of any form whatsoever, are taxed under the head “Income from other sources”.
  • Any monetary gift exceeding Rs.50,000 received by an assessee being an individual or HUF, without consideration, from any person other than relatives or members of HUF, is taxable under this head of income. However, money received under Will or inheritance, money received on the occassion of the marriage of the individual or from a local authority etc. are not chargeable to tax.
  • Income by way of interest on securities or bank or company deposits or loans, if the same is not chargeable under the head “Profits and Gains of business or Profession”, is chargeable under this residual head
  • Any casual receipt and receipts of non-recurring nature
  • Income from ketting out of plant or machinery is chargeable to tax under this Head, if the same is not chargeable under the head “Profits and Gains of business or Profession”
  • Remuneration of members of parliament.
  • Agricultural income earned from any land outside India
  • Family pension received by legal heirs
  • Intered received on delayed refunds by income tax department

The aggregate sum of income of the nature described above, after deducting expenses incurred to earn such income during the previous year and any other deduction provided in Section 57 of the IT Act 1961, is chargeable to tax under the head Income from Other Sources. However, any expense incurred to make winnings from any game of chance is not allowable as a deduction.

If you have any specific queries, do discuss below in the comments section.

Recommended Videos

Income Tax : AY 16-17 : Income From Other Sources : Lecture 1
Title
Income Tax : AY 16-17 : Income From Other Sources : Lecture 1
Income Tax - AY 14-15 - Income from Other Sources - Lecture 1
Title
Income Tax - AY 14-15 - Income from Other Sources - Lecture 1
Computation of Income Tax by Vijay Adarsh | Stay Learning | (HINDI)
Title
Computation of Income Tax by Vijay Adarsh | Stay Learning | (HINDI)
INCOME FROM OTHER SOURCES - PART 1  Tax Update 88
Title
INCOME FROM OTHER SOURCES - PART 1 Tax Update 88
Video 1 of 8- Topic Gifts- Chapter Other Sources- Subject Income Tax- CA IPCC
Title
Video 1 of 8- Topic Gifts- Chapter Other Sources- Subject Income Tax- CA IPCC

Leave a Reply

Your email address will not be published. Required fields are marked *

*