Income from Other Sources is the residual head of income. Hence, any income which is not specifically taxed under any other head of income will be taxed under this head. Further, there are certain incomes which are always taxed under this head.
These incomes are as follows:
- Dividends from companies.
- Winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort, gambling or betting of any form whatsoever.
- Income by way of interest received on compensation or on enhanced compensation shall be chargeable for tax under the head “Income from Other Sources”.
- Gifts are also taxed under this head.
- Family pension.
- Different interest incomes (eg. interest income from post office savings account, bank savings account, bank fixed deposit etc.).
- Interest received from IT Dept. on delayed refunds.
- Insurance commission.
- Income from letting out of machinery, plant or furniture.
- Income from royalty.
- Any sum received under a Keyman Insurance Policy including bonus.
- Director’s commission for standing as guarantor to bankers.
- Remuneration received by Members of Parliament.
- Income from sub-letting of House Property by a tenant, etc.
This is an inclusive list and not an exhaustive list. Please note that Agricultural income is exempt from tax so it will not fall under any of the heads of income. It will be mentioned as exempt income while e-filing the Income Tax Return.
To understand this more in depth, read our article here.