Income from other sources

Muqddas Abbas 1847132

Azfar Jabbar Khan 1847104
Saba khan 1847158
Hammad khan 1847135
Hamza Chaudhary 1847106
Income from other sources?

◦  Incomefrom other sources is a category under the Income Tax in which we

can consider all the different sources of income which doesn’t fall under
other heads such as income from salary, or house property or capital gains
Type of income falls under two categories

 Recurring income:
Any income received at regularly at equal intervals. This generally includes interest income from savings
bank, post office savings, fixed deposits, recurring deposits etc.
 Non-recurring income:
Any income received only once. This generally includes Income from lottery, gambling, horse racing etc.
Examples of income under other sources

 Income from sub-letting

 Interest on bank deposits and loans
 Income from royalty
 Directors fees
 Ground rent
 Agriculture income received outside India
 Directors commission for standing as a guarantor to bankers
 Directors commissions for underwriting shares of new company
 Examination remuneration received by teacher
 Remuneration received by a person from a person other than his employer
 Rent of plot of land
Examples of income under other sources
 Income from sub-letting  Directors commissions for underwriting shares of
new company
 Interest on bank deposits and loans
 Examination remuneration received by teacher
 Income from royalty
 Remuneration received by a person from a person
 Directors fees other than his employer
 Ground rent  Rent of plot of land
◦   Insurance commission
 Agriculture income received outside India
◦  Mining rents and royalties
 Rent of plot of land
◦  Interest on foreign government securities
 Family pension received by family member of a
◦  Casual income
deceased employee
◦  Annuity payable under will , contract , trust, deed
 Interest on employees contribution if provident
fund is unrecognized ◦  Salary payable to MP
Income from Other Sources
1. Dividend is chargeable at a pace of 10% if the total measure of profit during that year surpasses
Rs10,00,000. This is appropriate to people/HUFs. On the off chance that you get a profit from a
homegrown organization and it is chargeable under profit conveyance charge, at that point you will
get an exception.
2.One-time pay: Income from lotteries, crossword puzzles, horse races, games, betting or wagering.
3.Interest on protections in the event that it isn't available under Profits and Gains of Business or
Profession.
4.Income from hardware, plant or furniture having a place with citizen and let on recruit. This is
material if pay isn't chargeable to burden under the head Profits and Gains of Business or
Profession.
Income from Other Sources
5. Composite rental pay from letting of plant, apparatus or furniture with structures, where such letting is indivisible. Once more, this is
pertinent if this pay isn't available under the head Profits and Gains of Business or Profession.
6. Any amount of cash or property got by an individual or HUF from any individual will be available under pay from different sources.
The special case is appropriate just in the event that you get the sum/property from your relatives*.(Investigate the rundown of family
members as characterized by ITD – Relative rundown)
• If you get any sum without thought and is more than Rs. 50,000 during the earlier year, at that point the entire sum will be available.
• If you get an ardent property without thought and the stamp obligation esteem surpasses Rs. 50,000, at that point the stamp obligation
estimation of such property will be available.
• If you get an ardent property for a thought which is not exactly the stamp obligation estimation of the property by higher of the
accompanying sum the thing that matters is available:
• The measure of Rs50,000
• The sum equivalent to 5% of the thought
• If versatile properties** is gotten without thought and the total honest assessment of such properties surpasses Rs. 50,000, at that point the
entire of the total honest evaluation of such properties will be available.
• If versatile properties are gotten for a thought which is not exactly the total honest assessment of properties by a sum surpassing Rs.
50,000, the contrast between the total honest evaluation and the thought is available.
Income from Other Sources
7. If a worker gets any pay because of the end of his business or alteration of terms and conditions
identifying with the work, at that point that sum will be available.
8. Any amount of cash got as a development or in any case throughout dealings for the exchange of
a capital resource will be charged to burden under this head, if:
The entirety is relinquished; and

The exchanges don't bring about the exchange of such capital resource
Exemptions applicable for different sources of income

NATURE OF Income DEDUCTIONS ALLOWED

 7. Dividend or Interest on securities   Any reasonable amount paid as commission or

 Employee’s contribution towards EPF,
Superannuation Fund, ESI Fund or any other
fund setup for the welfare of such employees.
 Rental income letting of plant, machinery,
furniture or building
 Family Pension
remuneration to the banker or any other person for the
purpose of realizing dividend or interest on securities.
 If employees’ contribution is credited to their account in
the relevant fund on or before the due date, then the
complete amount is exempted.
 Rent, rates, taxes, repairs, insurance and depreciation etc.
 33.33% of family pension subject to a maximum of Rs.
15,000

 Any other income  Any other expenditure (not being capital expenditure)
expended wholly and exclusively for earning such income.
Calculation tax on income from other sources

• You can compute the duty on pay from different sources in 2 unique manners.
• On the off chance that the pay is from a non-repeating source (or causal pay, for example, pay from lottery, horse race and
so forth, at that point an assessment of 30% is straightforwardly material to the absolute pay sum.
• For example, on the off chance that you're easygoing pay is Rs.1 lakh, at that point duty of Rs. 30,000 is relevant on the sum.
• The all out available sum will be added to your other available wages. In this manner the payable expense will be according
to the current annual duty chunk.
• Model: If you are getting any family annuity of Rs. 50,000, at that point you will get an exception of 33.33% or 15000,
whichever is the least.
• 33.33% of 50000 = 16665 or 15000. Since 15,000 is the lesser sum, that will be the exception sum.
• So available pay will be 50000 – 15000 = 35,000.
• 35,000 will be then added to other pay and personal duty chunk will be applied on complete available pay.
• With that, we have arrived at the end our blog on pay from different sources. We trust you discovered this accommodating.
Tax Deduction Cannot Be Claimed

You can compute the duty on pay from different sources in 2 unique manners.
The deduction that can't be guaranteed during calculation of income from other sources are:
• Personal costs
• Amount referenced according to Section 40A isn't deductible
• Taxable sum paid under the classification 'compensations' and payable external India charges have not
been paid or deducted at source
• Sum paid towards Wealth Tax that isn't deductible
• Interest that can be charged external India on which expenses have not been paid or deducted at
source