Taxation of Income from Other Sources Under Income Tax Law (As Amended by Finance Act, 2022)

As Amended by Finance Act, 2022
...................................................................................................................................................................................................................................
Description
"Income from Other Sources" is one of the heads of income chargeable to tax under the Income-tax Act, 1961. Any income that is not covered in the other four heads of income is taxable under income from other sources, because of this, it is known as residuary head of income. All the incomes excluded from salary, capital gains, house property or business & profession are included in Income from other Sources, except those which are exempt under the Income Tax Act. The basic idea of taxation of income from other sources is as indicated by its name.Section 56 of the Income-tax Act,1961 (the 'Act') corresponds to section 12 of the 1922 Act is covered under the heading 'F' - Income from Other Sources in the 'Chapter IV - Computation of Total Income' of the Income Tax Act, 1961. The said section is a residuary section which deals with the incomes which ar  generally not taxable under the other heads of the Income. The language of the earlier section 12(1) was stated as the tax shall be payable under the head "Income from other sources" in respect of income, profits and gains of every kind which may be included in his total income (if not included under any of the preceding heads).
......................................................................................................................................................................................................................................
Contents
Chapter 1:    Introduction
Chapter 2:    Income Exempt from Tax
Chapter 3:    Income from Other Sources
Chapter 4:    Dividends
Chapter 5:    Winning from Lotteries, Crossword Puzzles, Horse Races and Card Games
                       Etc.-- Income Referred to in Section 2(24) (ix)
Chapter 6:    Employees' Contribution to Provident Fund, Etc. i.e. towards Staff Welfare
                       Schemes
Chapter 7:    Income by Way of Interest on Securities
Chapter 8:    Income from Letting Out of Plant, Machinery or Furniture
Chapter 9:    Income from Composite Letting of Plant, Machinery or Furniture and Building

Chapter 10:  Any Sum Received under a Keyman Insurance Policy Including Bonus
Chapter 11:  Where Money Exceeding Rs. 25,000 Received without Consideration
                       between 01.09.2004 and 31.03.2006
Chapter 12:  Income to include gift of Money from Unrelated Persons - Where Money
                       Exceeding Rs. 50,000 Received with Consideration Between 01.04.2006 and
                       30.09.2009
Chapter 13:  Income to include Transfer of Money and /or Property Receiver between
                       01.10.2009 and 31.03.2017
Chapter 14:  Taxability of shares Received by a Firm or a company for Inadequate without
                       Consideration Between 01.06.2010 and 31.03.2017
Chapter 15:  Share Premium in Excess of Fair Market Value to be Taxes as Income
Chapter 16:  Income by Way of Interest on Compensation or on Enhanced Compensation
                       Referred to in Section 145A(b)
Chapter 17:  Any Sum of Money, Received as an Advance or Otherwise in the Course of
                       Negotiations for Transfer of a Capital Asset
Chapter 18:  Money/Property Received without Consideration or Inadequate Consideration
                        on or after 01.04.2017
Chapter 19:  Taxability of Compensation in Connection to Business or Employment
Chapter 20:  Income Generally Taxable as Income from other Sources
Chapter 21:  Income from Undisclosed Sources (Deemed Incomes)
Chapter 22:  Deductions
Chapter 23:  Amounts not Deductible
Chapter 24:  Profits Chargeable to Tax
Chapter 25:  Carry Forward ans Set Off of Losses
Chapter 26:  Interest from Fixed deposits in Banks
Chapter 27:  Income from Letting out
Chapter 27:  Interest earned on Bank Deposits Prior to commencement of Business operations
Chapter 27:  Compensation Awarded by Motor Accident Claims Tribunal
Chapter 27:  Income generally not taxable as income from other sources
Chapter 31:  Double taxation Relief to Residual categories of Income
Chapter 32:  Tax on Income Chargeable under the Head "Income from Other Sources'"
Chapter 33:  Computation of Income under the Head "Income from Other Sources"
............................................................................................................................................................................................................................
Author Details
Ram Dutt Sharma got his post-graduation (M.Sc.) from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and presently working as Income Tax Officer in Faridabad. He worked at various stations of North-West Region of Income Tax Department. He has wide experience of all wings of income Tax Department such as assessment unit, Special Range, TDS Wing, Investigation Wing, Intelligence and Criminal Investigation etc. He has been contributing articles and addressing on topics relating to Income Tax at Direct Tax, Regional Training Institute, Chandigarh. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations. He is the author of number of books on direct taxes, namely Computation of income from salary under income tax law with tax planning, Computation of income from house  property, Formation and Management of Charitable and Religious Trust, Educational and Medical Institutions under income-tax law, Taxation of Non-Resident Indians  under income-tax law etc. which have been highly appreciated by the readers.