INCOME FROM

OTHER SOURCES
BSL301
LEARNING OUTCOMES:

• Identify general and specific incomes which will operate when first four heads of incomes gets
exhausted.
• Differentiate among general and specific incomes under the head income from other sources.
• Compute the taxable value of various items under this head.
INTRODUCTION

• Any income, profits or gains includible in the total income of an assessee, which cannot be
included under any of the preceding heads of income, is chargeable under the head ‘Income
from other sources’.

• Thus, this head is the residuary head of income and brings within its scope all the taxable
income, profits or gains of an assessee which fall outside the scope of any other head.
MCQ 1:
Income from letting of machinery, plant and furniture is -

(a)  always chargeable to tax under the head “Profits and gains of business
and profession”

(b)  always chargeable to tax under the head “Income from other sources”

(c)  chargeable under the head “Income from other sources” only if not
chargeable under the head “Profits and gains of business and profession”.

(d)  chargeable to tax under the head “Income from house property”
MCQ 1:
Income from letting of machinery, plant and furniture is -

(a)  always chargeable to tax under the head “Profits and gains of business and
profession”

(b)  always chargeable to tax under the head “Income from other sources”

(c)  chargeable under the head “Income from other sources” only if not
chargeable under the head “Profits and gains of business and profession”.

(d)  chargeable to tax under the head “Income from house property”
 Income from
other sources TYPES OF
INCOME
UNDER THIS
General income Specific income
[Sec 56(1)] [Sec 56(2)] HEAD
 Agriculture Repurchase of Casual Income
income from units u/s 80CCB – other than those
outside India. principal amount. taxable u/s 56[2]

GENERAL
Withdrawal from
Receipts from All types of
NSS u/s 80CCA –
person other than Interests except
principal amount
employer. taxable u/s 56[2]
+ Interest.

INCOME
[SEC 56(1)]
Income from sub- Income from
letting or rent of undisclosed
vacant land. sources.

Remuneration for
Director’s
delivering lectures
fee/Sitting fee.
or writing articles.
 Income of other
Income derived by a
person to be Agency commission
coal mine owner
included in the received by agent of
GENERAL
from rent and
income of life insurance.
royalties
individual.

Income earned by
Family pension Any annuity or
INCOME
assessee from
licenses granted to
brick makers.
received by legal
heirs of employees.
pension received
from LIC.
[SEC
56(1)]
Income received by Tips received by a Commission
a professional man waiter or taxi driver, received by director
as a university not being given by for underwriting/
examiner. his employer guarantor
Dividend from foreign Income from letting of Forfeiture of advance
companies, cooperative building along with money received if
societies and deemed fixtures (separation is negotiation for transfer

SPECIFIC
dividend. not possible) of capital asset fails.

Interest on securities.
Income from letting of
plant and machinery (if
Interest on
compensation or INCOME
[SEC
enhanced compensation
not regular business)
received.

Winnings from Any amount of gift

56(2)]
lotteries, races, which is not exempted
crossword puzzle, u/s 56(v) (exceeding
betting, etc. 50,000)
DIVIDEND INCOME
MCQ 2:
Mr. X aged, 61 years, received dividend of ` 12,00,000 from a domestic
company in P.Y. 2017-18. Tax chargeable under section 115BBDA is @10%
on –

(a)  The entire amount of ` 12,00,000

(b)  ` 2,00,000

(c)  Nil

(d)  ` 9,00,000
MCQ 2:
Mr. X aged, 61 years, received dividend of ` 12,00,000 from a domestic
company in P.Y. 2017-18. Tax chargeable under section 115BBDA is @10%
on –

(a)  The entire amount of ` 12,00,000

(b)  ` 2,00,000

(c)  Nil

(d)  ` 9,00,000
MCQ 3:
In respect of dividend received from domestic companies in excess of `
10,00,000 by an individual-

(a)  no deduction under Chapter VI-A is allowed but loss under other heads
can be set-off against such income.

(b)  no deduction under Chapter VI-A is allowed and no loss can be set-off
against such income.

(c)  Both deduction under Chapter VI-A and set-off of losses against such
income are allowed.

(d)  deduction under Chapter VI-A is allowed but set-off of losses under other
heads against such income is not allowed.
MCQ 3:
In respect of dividend received from domestic companies in excess of `
10,00,000 by an individual-

(a)  no deduction under Chapter VI-A is allowed but loss under other heads
can be set-off against such income.

(b)  no deduction under Chapter VI-A is allowed and no loss can be set-off
against such income.

(c)  Both deduction under Chapter VI-A and set-off of losses against such
income are allowed.

(d)  deduction under Chapter VI-A is allowed but set-off of losses under other
heads against such income is not allowed.
TDS:
Details Rate of TDS
Dividend on shares NIL
Interest on Units of UTI and Mutual Funds NIL
Bank Interest (If exceeds 10,000) 10%
Interest on Securities
Central or State Government NIL
Local authority or Statutory Corporation 10%
Company: - Listed securities 10%
Unlisted Securities 10%
Winning from lotteries, Races, Puzzles, Card Games, 30%
TV game Shows

Gross Amount = (Net Received X 100)/(100 – Rate of TDS)

Details Amount

Winning from lotteries >10,000

CASUAL
Crossword puzzles >10,000 INCOME
(WINNINGS FROM
Card games >10,000 LOTTERIES,
RACES,
TV game shows >10,000 CROSSWORD
PUZZLE,
Horse race >5,000 BETTING, ETC)

others No TDS
TYPES OF GIFTS

Gift of Money

Gift of Immovable
Types of Gifts
property

Gift of Property
Gift of property
(specified) other than
immovable property
GIFTS:

Relative Others
Spouse Marriage
Brother/sister Will
Brother/sister of spouse Local authority
Brother/sister of parents Fund or foundation
Lineal ascendant/descendant By HUF from members
Lineal ascendant/descendant - spouse Trust/Institution
Spouse of above persons
MCQ 4:
Akhil HUF received 75,000 in cash from niece of Akhil (i.e.,
daughter of Akhil’s sister). Comment upon its taxability

a) Full amount of Rs 75,000 is taxable

b) Not Taxable as niece is covered under the definition of relative

c) Not taxable as the amount does not exceeds 1,00,000 Rs

d) Rs 25,000 is only taxable as 50,000 is exemption

MCQ 4:
Akhil HUF received 75,000 in cash from niece of Akhil (i.e.,
daughter of Akhil’s sister). Comment upon its taxability

a) Full amount of Rs 75,000 is taxable

b) Not Taxable as niece is covered under the definition of relative

c) Not taxable as the amount does not exceeds 1,00,000 Rs

d) Rs 25,000 is only taxable as 50,000 is exemption

 Shares and
securities

Bullion Jewellery GIFT OF

PROPERTY
Any work of Archaeologica (SPECIFIED)
OTHER THAN
art l collection

IMMOVABLE
Sculptures Drawings
PROPERTY
Paintings
MCQ 5:
Kishan HUF gifted a car to son of Karta for achieving good
marks in XII board examination. The fair market value of the
car is ` 5,25,000
a) Full amount of Rs 5,25,000 is taxable

b) Not Taxable as car is not covered under the definition of gift

c) Not taxable as the amount does not exceeds 10,00,000 Rs

d) Rs 4,75,000 is only taxable as 50,000 is exemption

MCQ 5:
Kishan gifted a car to son of Kartik for achieving good marks in
board examination. The fair market value of the car is 5,25,000

a) Full amount of Rs 5,25,000 is taxable

b) Not Taxable as car is not covered under the definition of gift

c) Not taxable as the amount does not exceeds 10,00,000 Rs

d) Rs 4,75,000 is only taxable as 50,000 is exemption