PROJECT OF TAXATION

LAWS
ON
INCOME FROM OTHER
SOURCES

SUBMITTED TO:

SUBMITTED BY:

Ms. Supreet Gill Sidhu,

Nupur Walia

Assistant Professor

38/10

UILS, PU

9th Semester
Section A

Acknowledgment
First of all, I would like to thank my subject teacher Ms. Supreet Gill for giving me this
project and helping me through the completion of it, by giving tactful outlines. I have learnt a
lot through her lectures. I would also thank our library staff for providing me with resourceful
books.
Acknowledged by :
Nupur Walia
38/10

TABLE OF CONTENTS
1.
2.
3.
4.
5.

Acknowledgment.................................................................................................................2
Introduction...........................................................................................................................4
Income from other sources [Sec 56]..................................................................................5-6
Dividend...........................................................................................................................6-10
Winnings from lotteries & betting, crossword puzzles, horse races etc.........................10-11

6.

Interest on Securities.......................................................................................................11-14

7.

Standard deduction in the case of family pension................................................................14

8.

Income from letting of machinery, plant or furniture and buildings....................................14

9.

Income from composite letting of machinery, plant or furniture and buildings...................15

10. Taxation on Gifts.................................................................................................................16

11. Permissible deductions from income from other sources [section 57]...............................18
12. Amount expressly disallowed [Sec.58]...............................................................................19

INTRODUCTION
In India, Income tax was introduced for the first time in 1860, The Income Tax Act 1961 has
been brought into force with 1 April 1962. It applies to the whole of India including Jammu and
Kashmir.
All income shall be classified under the following heads for the purpose of computation of
taxable amount subject to certain Exemptions and deductions.
Income earned during the year can be classified into categories like :

Income from Salary

Income from House Property

Income from Business & Profession

Income from Capital Gain

Income from Other Sources : Any income which does not fall under the heads of Salary,
House Property, Business & Profession and Capital Gain will fall under the head Income
from Other Source. Hence, this is the residuary head of income.

The current project is dealing with INCOME FROM OTHER SOURCES. Therefore, I will
only be discussing the various aspects related thereto.
Income from other sources is the fifth and last head of income under which the total is computed
and assessed. As the very name suggests. 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. Section 56 lays down what
incomes are taxable under this head. Section 57 and 58 lays down the deductions which are
allowable and not allowable respectively, while computing income under this head. Section 59

deals with income chargeable to tax, corresponding to section 41, which falls under the head of
Profit and Gains of The Business.

INCOME FROM OTHER SOURCES

General Definition : It is residuary head of Income which must satisfy the following
conditions:1. There must be an income;
2. This income is not exempt under the IT Act 1961; and
3. This income is not chargeable to tax under the other heads of income viz. "Salary",
"House

property",

"Business

or

Profession"

and

"Capital

Gains".

Example of Income from Other Sources : Some examples of certain incomes normally
taxed under this head are given below:

Interest on bank deposits, loans or company deposits,

Dividend;

Family pension (received by legal heirs of an employee),

Income from sub-letting of house property by a tenant,

Agricultural income from agricultural land situated outside India,

Interest received from IT Dept. on delayed refunds,

Remuneration received by Members of Parliament,

Casual receipts and receipts of non-recurring nature,

Insurance commission,

Examiner-ship fees received by a teacher (not from employer),

Income from royalty,

Director's commission for standing as guarantor to bankers,

Winnings from Lotteries, Crossword Puzzles, Horse Races and Card Games,

Interest on securities,

Income from letting out of machinery, plant or furniture, etc.

Any sum exceeding Rs. 50,000/- received without consideration shall be treated as
income provided that the sum of money is not received from any relative or on the
occasion of marriage of the individual or under a will or inheritance etc

Having briefly mentioned the various examples of incomes from other sources, it is pertinent to
elaborately mention about the important heads of such incomes. They are as follows :

DIVIDEND

A.

Dividend is the distribution of divisible profits by a joint stock company to its shareholders
by way of return on investments in the shares of the company.
DIVIDEND UNDER THE INCOME TAX ACT (DEEMED DIVIDENDS)
Sec. 2 (22) gives the definition of Deemed dividend which is chargeable to tax under the head
Income from other sources, even if the receipt is not regarded as dividend under the Companies
Act.
Under section 2(22), following payments or distribution by a Company to its shareholders is
deemed as dividends to the extent of accumulated profits of the company.
i.

ACCUMULATED PROFITS
7

Accumulated profits should include the credit balance of the Profit and loss account, general
reserves, investment allowance, capitalized profits (Bonus shares) and profits of the year up to the
date of distribution/ liquidation.
Even Reserve created out of agriculture income, Capital redemption reserve, Dividend
equalization reserve, Workmen Compensation reserve, Debenture redemption reserve, shipping
reserve, Reserve for contingency etc. form part of Accumulated reserves.
However, provisions and reserves meant for specific liability, to the extent of the liability shall not
be included. Provision for Income tax, provision for dividend, reserve for depreciation do not
form a part of the accumulated profits.
Share premium a/c shall not form part of accumulated profits.
Accumulated profits includes tax free incomes e.g. agricultural income.

Section 2 (22) (a) - Any distribution by a company to the extent of accumulated profits involving
the release of the asset of the company:
Dividend includes any distribution by a company of accumulated profits, whether capitalized or
not, if such distribution entails the release by the company to its shareholders of all or any part of
the assets of the company. It basically includes distribution of assets whether in cash or in kind.
It was held in Shashibala v. Navnitlal that Issue of bonus shares does not entail release of any
assets of the company as the asset side remains intact. Hence it is not treated as dividend u/s (22)
(a).
It was held in Central India Industries Ltd. (SC) When assets are distributed under section 2(22)
(a), the market value of the asset on the date of distribution has to be taken for computing the
dividend.
Section 2(22) (b) Distribution of Debenture/ Deposit Certificates to Shareholders and
bonus shares to preference shareholders:
Dividend includes :

(i) any distribution to its both equity and preference shareholders by a company of debentures,
debenture-stock or deposit certificates in any form, whether with or without interest, and
(ii) any distribution to its preference shareholders of shares by way of bonus to the extent to
which the company possesses accumulated profits, whether capitalized or not.
Section 2(22)(c) Distribution to shareholders on liquidation of the company
Dividend includes any distribution made to the shareholders of a company on its liquidation, to
the extent to which such distribution is attributable to the accumulated profits of the company
immediately before its liquidation, whether capitalized or not.
Section 2 (22) (d) Distribution on reduction of share capital
Dividend includes any distribution to its shareholders by a company on reduction of its capital to
the extent to which the company possesses accumulated profits, whether capitalized or not.
Note: Section 2(22)(c) & Section 2(22)(d) above do not include distribution in respect of
preference shares issued for full cash consideration.
Section 2 (22) (e) Loans/ Advances to certain shareholders/ concerns
Dividend includes
any payment by a company not being a company in which public are substantially interested
[closely held company]
of any sum by way of loan/ advance to
(i) a shareholder being the beneficial owner of shares &holding not less than ten percent of
voting power. Or
(ii) to any concern - HUF/Firm/Company/AOP/BOI.in which such a shareholder ( i.e. beneficial
owner of 10% or more of shareholding)is a member or a partner and in which he has a
substantial interest - 20% of income/voting power at any time during P/Y. or
(iii) to any person, on behalf of or for the individual benefit of such a shareholder( i.e. beneficial
owner of 10% or more of shareholding)
to the extent to which the company possesses accumulated profits.(excluding capitalized
profits)
Note:

 U/S 2 (22) (e), if loan is given to a Shareholder and on date of loan, his share holding was
less than 10% and subsequently it is increased to 10% or more than Sec. 2 (22) (e) is not
attracted. Thus, 10% or more shareholding is to be seen as on the date of loan.
Even trade deposit to a shareholder will be treated as dividend u/s 2(22)(e).
Payment on behalf of shareholder:
Section 2(22)(e) covers not only advances and loans to shareholders but any other
payments by the company on behalf of or for the benefit of individual shareholders, such
as payments of shareholders personal expenses like air tickets etc., insurance premium,
etc., to the extent of the accumulated profits of the company.
If any such loan was given to more than one such shareholders, accumulated profits shall
be reduced by the amount of the loan given to the earlier shareholder. As decided in CIT
v. G. Narasimhan 1
If loan or advance was given to any such shareholder and subsequently the loan amount
was repaid by him, even in such cases the loan or advance shall be considered to be
dividend. As decided in Tarulata Shyam v. CIT 2
EXEMPTION U/S 2(22)(e)
Any advance or loan made to a shareholder or a concern by a company in the ordinary course
of it business where money lending is substantial part of the business of the company. Ordinary
course of business shall mean that the loan or advance should be given to such shareholder at the
same rate and terms as it is given to other borrowers.
Any dividend paid by a company which is set off by the company against the whole or any
part of the loan which has been deemed as dividend under section 2(22)(e).
Note:

Dividend does not include any payment made by a company on purchase of its own
shares in accordance with the provisions contained in section 77A of the Companies Act,
1956.

1 (1979) Mad HC

2 (1977)(SC).

10

Dividend does not include any distribution of shares made in accordance with the scheme
of demerger by the resulting company to the shareholders of the demerged company
whether or not there is a reduction of capital in the demerged company.

Deductions for expenses from dividend income [Section 57(i) and 57(iii)]
The following expenses can be claimed as deductions from gross dividend income:
(a) Collection charges: e.g. commission or remuneration to a banker or any other agent/broker
for the purpose of realizing the dividend.
(b) Interest on loan:Interest on money borrowed for purchasing the shares can be claimed as
deduction. This deduction can exceed the amount received by way of dividend. It interest is
payable outside India, TDS must be done, otherwise deduction is not available.
Practically, dividend declared by Indian company is exempt, hence above deductions
cannot be claimed. But still dividend declared by foreign companies / cooperative
societies is taxable and so deductions discussed above can be claimed.
Basis of charge
Method of accounting regularly employed by the assessee does not effect basis of charge of
dividend income fixed by Section 8:

Normal Dividend-Normal dividend declared at annual general meeting is deemed to be

the income of the previous year in which it is declared.

Deemed dividend-Notional dividend under section 2(22) is treated as the income of the
previous year in which it is so distributed or paid.

Interim dividend- Interim dividend is deemed to be the income of the previous year in
which the amount of such dividend is unconditionally made available by the company to
a shareholder.

Place of Accrual [Sec 9(1)(iv)] :Dividend paid by an Indian company is deemed to accrue or
arise in India.
B. WINNINGS FROM LOTTERIES & BETTING, CROSSWORD PUZZLES, HORSE
RACES AND CARD GAMES etc. SEC. 115 BB.

11

It also includes income through draw of lots, television game shows and similar other games.
Taxable at a flat rate of 30% without claiming any allowance or expenditure. Even if income is
less than Rs 2,00,000 for the financial year 2012 13, these incomes are fully taxable. Lottery
includes winnings, from prizes awarded to any person by draw of lots or by chance or in any
other manner whatsoever, under any scheme or arrangement by whatever name called. Card
game and other game of any sort includes any game show, an entertainment programme on
television or electronic mode, in which people compete to win prizes or any other similar game.

Deductions u/s 80C to 80U are not available against such incomes.

Surcharge & education cess will apply in a usual way.

Formula for grossing up: Net amount received X 100/100 (-) rate of TDS.
TDS Rate
As per section 194B the TDS rate for lottery, crossword puzzles or card games or other games
is 30% [No TDS if lottery etc. up to Rs 10,000 but if amount exceeds Rs 10,000 then TDS on
whole amount].
As per section 194BB, the TDS rate for winning from horse races is 30% [No TDS if winning
up to Rs 5000 but if winnings exceed Rs 5000 then TDS on whole winnings].
Note: No TDS is deducted if Lottery Price is less than Rs.10,000 but still the tax is payable by
the assessee. Similarly no TDS in case of Winning from other races, gambling or betting.

C. INTEREST ON SECURITIES:
Such income is taxable under the head Profit and gains of business or profession, if the
securities are held as stock-in-trade. And if they are held as investment, the interest will be
taxable under the head Income from other sources.

Interest on securities is taxable for the registered owner of securities, i.e. who is
registered owner on the date, on which the interest falls due, even if he is not the owner
of security for the period for which the Interest is being paid. For example, if the due date
of interest for Debentures of XYZ Ltd. is 31 st March, then who so ever is the owner of
debentures on 31st March, shall be entitled to receive the interest for the full year, as well

12

as he is taxable for the same, even though he might have purchased these debentures just
one or two month back.

It is the gross amount, which is taxable.

Grossing up of Interest:
Interest is paid after TDS at following rates:

Govt. Securities: Nil (In case of 8% saving bonds, if amount of interest exceeds Rs
10,000 then there is a TDS @ 10%)
Listed / Non listed securities: 10%
Formula for grossing up: Net amount received X 100/100 (-) rate of TDS
Note: No tax is deductible on debentures issued by a widely held company if interest is
paid/payable to an individual, resident in India and the aggregate amount of such interest paid
or payable during the financial year does not exceed Rs 2500.

Expenses deductible from Interest income

The following expenses can be claimed as deductions from grossed up Interest income :
(a) Collection charges: e.g. commission or remuneration to a banker or any other agent/broker
for the purpose of realizing the interest.
(b) Interest on loan: Interest on money borrowed for purchasing the securities can be claimed as
deduction. This deduction can exceed the amount received by way of interest. If interest is
payable outside India, TDS must be done, otherwise deduction is not available.
Basis of charge
Interest on securities is chargeable on receipt basis if the books of accounts of such income are
maintained on cash basis. If, however, books of accounts are not maintained or maintained on
the basis of mercantile system of accounting, then interest on securities is taxable on accrual
basis. Deduction of collection charges, interest on borrowed capital is allowed as per the method
of accounting followed by the assessee.

13

Interest exempt from tax [Sec. 10(15)]

Interest on the following is exempt from tax:
1. Interest on notified securities, bonds or certificates:
a. National Defence Gold Bonds, 1980
b. Special bearer bonds, 1991
c. Post office Cash certificates
d. National Plan Certificates
e. National Plan Savings certificates
f. Post Office National Savings Certificates
g. Post Office Savings Bank Account
h. Post Office Cumulative Time Deposit Rules,1981
i. Special deposit Scheme, 1981
2. Interest on National Relief Bonds (only for individual and HUF)
3. 7% Capital Investment Bonds (only for individual and HUF)
4. Interest on notified bonds/ debentures of Public Sector companies
5. Interest on deposits in a specified scheme made by a retired govt./public sector employee
out of retirement benefits.
6. Interest on Gold Deposit bonds
7. Interest received by a non-resident Indian from notified bonds (i.e. NRI bonds).
Bond Washing transactions and Chargeability of Interest (Section 94)
Section 94(1) : The holder of securities is normally assessable on the whole interest, which falls
due on the date of interest. But this rule is not applicable to bond washing transactions. A bond
washing transaction consists of selling of securities just on the eve of due date of interest and
buying back securities after the due date of interest is over. Thus, a high-income group assessee
may avoid or reduce his tax liability by transferring the securities before the due date of interest
to a person (generally a friend or relative) who has no taxable income or whose rate of tax is
quite low.
As a result, the whole interest is includible in the income of the transferee who holds the
securities on the due date of interest. Thus the tax liability may be wholly avoided or
substantially reduced depending upon the total income of the transferee. To prevent this, it has
14

been provided [under Sec. 94(1)] that the whole interest in respect of a bond washing transaction
is deemed to be the income of the transferor and not that of transferee.
Section 94(2): Another method of avoiding tax is sale of securities cum-interest. Section 94(2)
provides that if an assessee, having beneficial interest in securities during the previous year,
sells them in such a way that either no income is received or income received is less than the
sum he would have received if interest had accrued from day to day, then income from such
securities for such year would be deemed as income of such person.
Exceptions:
The assessing officer shall not apply the above rule in the following cases:
(1) If the assessee proves to the satisfaction of the Assessing Officer that there has been no
avoidance of income tax; or
(2) If the assessee proves that the avoidance of income tax is exceptional and not systematic;
and there was no avoidance of income tax in any of the three preceding years.
D. STANDARD DEDUCTION IN THE CASE OF FAMILY PENSION [SEC. 57(IIA)]
In the case of income in the nature of family pension, the amount deductible is Rs. 15,000 or 33
per cent of such income, whichever is less. For this purpose family pension means a regular
monthly amount payable by the employer to a person belonging to the family of an employee in
the event of his death.
E. INCOME FROM LETTING OUT OF MACHINERY, PLANT OR FURNITURE
[SECTION 56(2)(II)]
Income from machinery, plant or furniture, belonging to the assessee and let on hire, is
chargeable as income from other sources, if the income is not chargeable to Income-tax under
the head Profits and Gains of Business or Profession.
In case any such assets are hired out as a part of the business activity carried on by the assessee
or as commercial assets belonging to the assessee, the income derived there from is assessable as
business income u/s 28 and not as income from other source u/s 56.

15

F. INCOME FROM COMPOSITE LETTING OF MACHINERY, PLANT OR

FURNITURE AND BUILDINGS [SECTION 56(2)(III)]:
Where an assessee lets on hire the machinery, plant or furniture belonging to him and also
buildings, and the letting of the buildings is inseparable from the letting of the said machinery,
plant or furniture, the income from such letting, known as composite rent, if it is not chargeable
to Income tax under the head Profits and gains from Business or profession, shall be
chargeable as income from other sources.
Deductions permissible from letting out of machinery, plant or furniture and buildings
[Section 57(ii) and (iii)]:
The following deductions are allowable:
(a) Current repairs, rates and taxes of the building if given to others on composite rent. {Rent
and taxes, however, shall be subject to Section 43B as in the case of Business or Profession}.
(b) Insurance premium against risk of damage or destruction of the premises.
(c) Repairs and insurance of machinery, plant or furniture.
(d) Depreciation as per section 32
(e) Any other expenditure, expanded wholly and exclusively for the purpose of making or
earning such income.
G. TAXATION OF GIFT [SECTION 56(2)(vii)]
1. Gift of Cash / Cheque / Draft : If, through one or more transactions, gift received is up to Rs
50,000 per financial year, then nothing is taxable. If gift is Rs 50,001 or above, then it is fully
taxable.
2. Gift of immovable property : In this case, if Stamp duty value is up to Rs 50,000 then nothing
is taxable. If it is above Rs 50,000, then fully taxable. It is applicable for each individual
transaction. Unlike above, if more than one transaction of Gift, below Rs 50,000, than they shall
not be aggregated. Similarly, if there is consideration, may be less or say if difference between
the actual selling price and Stamp duty value is more than 50,000, then the above law is not
applicable. It is applicable only in case of gift i.e. when property is transferred without
consideration.

16

3. Gift of movable property (one or more transactions) : If fair market value of all movable
properties gifted in one financial year is up to Rs 50,000, then nothing is taxable. But if it is more
than Rs 50,000, then it is fully taxable.
4. Movable property transferred for inadequate consideration : If difference between actual
consideration and fair market value is more than Rs 50,000, all transactions of one financial year
combined together, then the difference is fully taxable. If difference is up to Rs 50,000, than
nothing is taxable.
Exempted Gifts :
1.Money / property received from a relative or by HUF from its members
2. Money / property received on the occasion of the marriage of the individual
3. Money / property received by way of will/inheritance
4. Money / property received in contemplation of death of the payer.
5. Money / property received from a local authority
6. Money / property received from any fund,foundation, university, other educational institution,
hospital, medical institution, any trust, or institution referred to in the section 10(23C).
7. Money / property received from a charitable institute registered u/s 12AA
H. PERMISSIBLE DEDUCTIONS FROM INCOME FROM OTHER SOURCES
[SECTION 57]
I. Commission or Remuneration for realizing Dividend or Interest on Securities:
Any reasonable sum paid to a Banker or by any other person for the purpose of realizing
dividend or Interest on securities on behalf of assessee is deductible
II. Deduction in respect of Employees contribution towards Staff welfare scheme:
Such sum is allowable as deduction only of the sum received by the taxpayer as
contribution from his employees towards any welfare fund of such employees is allowable
only if such sum is credited by the taxpayer to the employees account in the relevant fund
before the due date.

17

III. Repairs, Depreciation in the case of letting out of Plant, machinery, Furniture,
Building:
Following expenses are allowable under this provision:

Current repairs in respect of Building;

Insurance premium in respect of Insurance against Risk of damage or

destruction of the premises;

Repairs and Insurance of machinery, plant and furniture;

Depreciation.

IV. Standard Deduction in case of Family pension

The deduction allowable is Rs. 15,000/- or 33.33% of such Pension received whichever is
less
V. Any other expenses for earning Income : Any other expenses related to earning of
Income from other sources should satisfy the following basic conditions to qualify as a
deductible expenditure:

The expenditure must be laid out or expended wholly and exclusively for the
purpose of making or earning the Income;

The expenditure must not be in the nature of Capital expenditure;

It must not be in the nature of Capital expenditure;

It must not be in the nature of personal expenses of the assessee;

It must be laid out or expended in the relevant previous year and not in any prior
or subsequent year.

I. AMOUNT EXPRESSLY DISALLOWED [Sec.58] :The following expenses are not allowed
to be deducted form such income :
18

1. Personal Expenses : Any personal expenses of the assessee is not deductible.

2. Interest : Any Interest chargeable under this Act which is payable outside India on which tax
has not been paid or deducted at source.
3. Salary : Any payment chargeable under head Salaries and payable outside India not
deductible if tax has not been paid or deducted therefrom.
4. Wealth Tax : Any sum paid on account of Wealth tax is not deductible.
5. Expenditure in respect of Royalty and Technical Fees received by a foreign company.
6. Expenditure in respect of winning from Lotteries etc. : In case an assess has income from
lotteries, crossword puzzles, races including horse races, card games and other games of any
sort or from gambling or betting of any form or nature whatsoever, such assessee shall not be
allowed any deduction in respect of any expenditure or allowance in connection with such
incomes.3

CONCLUSION
Under the Income Tax act, income of every kind which is not to be excluded from the total
income shall be chargeable to income tax under the head 'Income from other sources', if it is
not chargeable to income tax under any of the other heads of income. Thus, income from other
sources is a residuary head of income i.e. income not chargeable under any other head is
chargeable to tax under this head. All income other than income from salary, house property,
business and profession or capital gains is covered under 'Income from other sources'.
The following incomes are chargeable to tax :

Dividend received from any entity other than domestic company. This is because

dividend received from a domestic company has been made exempt in the hands of the receiver.
Accordingly dividend received from a cooperative bank or dividend received from a foreign
company will be taxable as income from other sources.
3 http://www.accounts4.com/2014/05/income-from-other-sources-income-tax.html

19

Any pension received by the legal heirs of an employee.

Any winnings from lotteries, crosswords, puzzles, races including horse races, card

games or other games of any sort or gambling or betting of any form or nature.

Income from any plant, machinery or furniture let out on hire where it is not the business

of the assessee to do so.

Income from securities by way of interest.

Any sum received by the assessee from his employees as contribution to any staff welfare

scheme. However when the assessee makes the payment of such contribution within the time
limit under the scheme of welfare, then the payment will be allowed as a deduction and only the
balance amount will be taxable.

Income from subletting.

Interest on bank deposits.

Allowable Deductions
The following deductions are available to the assessee in obtaining the taxable amount: In case of taxable dividend income and interest from securities, any reasonable sum paid by
way of remuneration or commission for the purpose of realizing such income including
interest on borrowed capital if such borrowed capital is used for making investment in shares
or securities.
In case of income from plant, machinery or furniture given out on hire, the following
expenses will be allowed as deduction:
Current repairs to building
Current repairs to machinery, plant or furniture
20

 Insurance premium paid for insuring the plant, machinery, building or furniture.
Depreciation on building, machinery, plant or furniture.

In case of any expenditure other than capital expenditure or personal expenditure which has
been incurred wholly, necessarily and exclusively for earning income like revenue
expenditure, such expenditure will also be allowed as a deduction.
In case of family pension received by legal heirs of an employee, a standard deduction of
1/3rd of such amount or Rs 15,000 whichever is less will be allowed by way of deduction.
The following amounts are not deductible under Section 58 while computing the taxable
amount :Personal expenses of the assessee; any interest which is payable outside India on which income
tax has not been paid or deducted at source; Any sum paid on account of wealth tax in India or
abroad.; Any amount not allowable by virtue of it being unreasonable; Any expenditure in
connection with income from winning form lotteries, crosswords, cross puzzles, races including
race horses, car race and other games of races, gambling, betting of any form. However expenses
are allowed as a deduction in computing the income of an assessee who earns income from
maintaining as well as holding race horses.

Bibliography

21

Singhania,Vinod K.,Direct Taxation:Law and practice of Income Tax, Taxman, 36th

Edition (2007)
Ahuja,Girish, Direct taxes; Law and Practice, 18th Edition, Bharat Publisher (2008-09)
Ratan, Jyoti, Taxation Laws, 9th Edition, Allahabad Law Agency, 2013
http://www.accounts4.com/2014/05/income-from-other-sources-income-tax.html
http://ngpa.in/images_files/productimg/1395654277.pdf
http://business.gov.in/taxation/other_sources.php
http://incometaxmanagement.com/Pages/Gross-Total-Income/Other-Sources/Deductionsfrom-Income-from-Other-Sources.html

INCOMR FROM OTHER SOURCES

SECTION 56(2)(i) - (iv)

S. 56(2)(ic)
56 (2)(ib)
Contributions
Any winnings from
received
lotteries, from
S. 56
56(2)(i)
Interest
S.
(2)(i)from
Empowee
crossword
puzzles
on securities
Dividens
PF/ESI
as referred
as referred
to in

S. 56(2)
(iii)

Income
from let
on hire of
machiner
If the letting
of
22
S. 56(2)(ii)
y,
plant
or
buildings is
IfIfincome
incomeisisnot
nottaxable
taxable
furniture
and if
under
underPGBP
PGBP
Income
from let on inseparable
alongwith
income
is
not
taxable
hire of machinery,

If income is not
taxable under
PGBP or salary
Note : Any sum
received
S.56 (2) under
a
keyman
(iv)
insurance
policy
including
Income
the
referred insum
allocated
by
S. 2(24)
way of bonus
(xi) :
on such policy.

Keyman
Insurance