Income from other sources | Fusion - WeRIndia

Income from other sources

Income from other sources

While filing income tax returns, taxpayers have to disclose their income from all sources. The Income Tax Department categorizes five heads of income.

Income from salary, income from business and profession, income from house property, income from capital gains/loss, and income from other sources.

Almost all taxpayers will have income from other sources. So, in this article, you will know what type of income falls in this category.

Interest accumulated in savings bank accounts should be disclosed under income from other sources. However, you can get a tax exemption of interest earned on savings bank accounts up to ₹10,000 under 80TTA.

As all taxpayers have at least one bank account and would have earned interest, they must disclose it under income from other sources. They can get a tax deduction of up to ₹10,000.

Besides, dividend income, income from gambling or winning lotteries and races, interest received on compensation, rental income earned from vacant land of a plant, building, plant, machinery, and furniture, interest on loans given, interest on deposits with companies, remuneration received by Members of Parliament, insurance commission received, family pension received by the legal heirs of deceased employees, agricultural income earned from agricultural land in other countries, and interest paid by the income tax department on advance tax, refund etc., fall under the category of income from other sources.

Besides gifts received from other than family members in the form of cash that exceeds ₹50,000 also fall in this category. Any kind of movable and immovable property without consideration is also taxable. However, gifts received from family members are not taxable.

In addition to that, they are not taxable in the following circumstances: If gifts are received on the occasion of the marriage of an individual, by way of inheritance or through a will, from any local authority, or by any fund, foundation, trust, educational institution or hospital, they are not taxable.

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