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WELCOM
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INCOME FROM OTHER
E SOURCES
NAME- DHARMI SHAH
DEPARTMENT/ROLL NO -TYBMS A 556
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INCOME FROM
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OTHER SOURCES
• RESIDUARY IN NATURE
• INCLUDES INCOME WHICH ARE NOT
TAXABLE UNDER OTHER HEADS OF
INCOME
• ONE OF THE HEADS OF INCOME
CHARGEABLE UNDER INCOME TAX ACT
INCOME FROM OTHER
SOURCES
• ANY INCOME NOT COVERED IN OTHER
FOUR HEADS OF INCOME IS CHARGED
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UNDER IFOS
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• ALSO KNOWN AS RESIDUARY HEAD OF
INCOME
• ALL INCOMES EXCLUDING SALARY ,
CAPITAL GAINS , HOUSE PROPERTY OR
BUSINESS /PROFESSION ARE INCLUDED
• (EXCEPT THOSE WHICH ARE EXEMPT
UNDER IT ACT )
Section Section Section
56 57 58
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Incomes Expenditures Sum not
taxable only allowed as allowed as
in IFOS deductions deductions
Incomes taxable only in Income from Other Sources
• Dividend Income
• Income earned from winning lotteries, crossword puzzles,
races (including horse race), gambling or betting of any
kind
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• Money or movable/immovable property received without
consideration or inadequate consideration during previous
year
• Interest on compensation or enhanced compensation
received
• Advance money received or money received in negotiation
for transfer of a capital asset (only if the money is forfeited
Incomes taxable under IFOS, only if not taxable
under Profits and Gains of Business or Profession
(PGBP)
• Any sum contributed towards provident funds,
ESI, etc. by employee to the employer, only if
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not deposited in the relevant fund
• Interest earned on Securities
• Income received from the letting of a plant,
machinery or furniture, with or without
building.
Incomes taxable under IFOS, only if not taxable under PGBP
or Salaries
• Keyman Insurance Policy
• Salary of MP/MLA
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Income Computation and Disclosure Standards
• Section 145 states that Income from Other Sources must be
computed on the regular accounting methods followed by
the assesses.
• It can be either cash or mercantile system of accounting.
The Central Government has notified Income Computation
and Disclosure Standards to be followed while computing
the income.
Section 57- Expenditures allowed as deductions
•Expenses incurred for realization of dividend or interest
income
•Deductions to the extent amount remitted within due date are
authorized in respect to contribution towards funds for the
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welfare of employees
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•Family Pension- deduction is allowed to the extent of 33-
1/3% of pension or Rs. 15000 whichever is less
•Deductions for current repairs, insurance and depreciation,
will be allowed for income earned by way of lease rental
•A deduction equal to 50% will be allowed for interest
received on compensation or enhanced compensation.
Section 58 - Sum not allowed as deductions while
computing taxable income
• Personal expenditure
• Interest or salary payable outside India without TDS
deduction
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• Wealth tax
• Expenditure concerning winnings from lotteries, crossword
puzzles, races, and gambling, etc.
• Expenses specified in Section 40A
