As the name suggests, it includes all income earned by you from other sources. In simple words, if any income does not fall in the first 4 heads of income, it will come under this head. Some Common examples of income from other sources are.
While filing ITR 1 online, you’ll have to disclose all the income from other sources as a total amount. As shown in the screenshot below, this disclosure has to be made under tab “Computation of Income & Tax” in the field “B3: Income from Other Sources (Ensure to Fill Sch TDS2)”.
Now, we know where to fill the income details, but the big question is
Section 56(2) of the Income Tax Act enlist certain incomes which are chargeable under head Income from Other Sources. For your convenience we have compiled the list of some popular income sources as below.
Although dividend given by an Indian company (in which public is interested) is exempt from tax in the hands of shareholders. But if the total income from dividend income exceeds ?10 Lac then excess will be taxable @ 10% u/s 115BBDA & in this you will need to file ITR 2.
Dividend from foreign companies, deemed dividend u/s 2(22)(e) etc are taxable in the hands of shareholder.
The above list shows the most common form of incomes which are taxable under head “Income from Other Sources”. But is not limited to these sources only.
Now, you must have noticed the line “Ensure to Fill “Sch TDS2”. What is this? What detail to be filled in this head? Let’s understand.
You can find this schedule in 4th tab “Tax Details”. Now, as the heading suggests, details of tax deducted under Form 16A are to be filled here.
Form 16A is a certificate which provide details of all the tax deduction made on income other than salary income. Therefore, you need to fill these details in order to claim tax credit while discharging tax liability.
This is how the Income from Other sources is shown in ITR 1 Form Sahaj. Now, the concepts of Income from Other Sources are vast. And the discussions are never ending.
To address concerns further, we have made a list 7 frequently asked questions.
Ans. Pension income is taxable under head “Income from Salary” while family pension income is taxable under head “Income from other Sources”.
Ans. To save tax, make a fixed deposit with lock-in period of 5 years. Now, claim the amount of investment as deduction u/s 80C up to Rs.1,50,000. But do note that interest received from such FD is taxable as income from other sources.
Ans. Yes, you should disclose interest income under head Income from Other Sources in ITR 1 irrespective of tax deduction and later claim the tax credit using Form 16A.
Ans. Yes, you can claim deduction of such expenses provided they directly relate to such income.
Asset includes “painting” as per Income Tax Act and If the value of such gift exceeds Rs.50,000 then it will be taxable under head Income form Other Sources.
Ans. No, any gifts received (whether in cash or kind) on the occasion of marriage are totally exempt from income tax.
Ans. If you have received this gift on any occasion (other than marriage) & its value exceed Rs.50,000. Then the whole amount will become taxable under head Income from Other Sources.
Ans. Winnings will be taxable under the Head of “Income From other Sources” and will be liable to 30% tax
Ans. Casual income means income which is not earned in a regular manner such as lottery income, horse races etc. and they are charged @30%
Ans. It would not be appropriate to leave it blank.
Ans. It is solely depends on the Tax Law of that country.
Ans. It is incorporated in that person’s return whose PAN is registered with the bank.
Ans. If tuition income is part time, it can be shown under Income from other sources, but the main source of income is Tuition fee then it will be considered as business income and GST will be applicable whenever gross receipt crosses the threshold limit.
Ans. Income Tax department could issue notice to the taxpayers who fail to include the income from other sources.
Ans. Yes, it is liable to include in income from other sources.
Ans. Income from dividend, one time income, Interest from deposit, Income from machinery, plant or furniture, and many more which are not taxed under any other head of income.
Ans. Yes, if there is any expense incurred for earning income, it can always be deducted.
Complete guide covering all the basic tax related terms. So, that tax terms will not work as a road-stopper in your way!!
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