Category Archives: Income From Other Sources

Deemed Income chargeable under the head “Income From Other Sources” under Section 59, of the Income Tax Act, 1961

Any amount received or benefit derived in respect of expenditure incurred or loss or trading liability allowed as deduction shall be deemed as income in the year in which the amount is received or benefit is accrued. Reference: As Per Section 59, of the Income Tax Act, 1961- The provisions of sub-section (1) of section 41 shall… Read More »

Clubbing of Income of Minor Child in Parents Income under Income Tax Act 1961

All income which arises or accrues to the minor child shall be clubbed (added) in the income of his parent. As per Section 64(1A), whose total income (excluding Minor’s income) is greater. However, if parents are separated, the income of minor will be included in the income of that parent who maintains the minor child… Read More »

Meaning of Income to include transfer of Shares in case of Recipient Firms and Companies under Income Tax Act 1961: Section 56(2)(viia)

As Per Income Tax Act, 1961 “Income to include transfer of shares in case of recipient firms and companies” includes: where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1st day of June, 2010, any property, being shares… Read More »

Meaning of Special rate of Income-tax on Wining from Lotteries, Crossword Puzzles, Races including Horse Races, Card Games and Other Games of any sort or gambling or betting of any form or nature whatsoever under Income Tax Act 1961: Section 115BB

There is a special rate of 30% for winning from lotteries, crossword puzzles, races including horse races, card games and other games of any sort of gambling or betting of any form or nature under Income tax. Basic exemption is not allowed, also 80G cannot be claimed on this income. S. 115BB, r/w s. 28(i)… Read More »

Meaning of Specific Incomes Chargeable as Income from Other Source under Income Tax Act 1961: Section 56(2)

As Per Income Tax Act 1961 “Basic Specific incomes chargeable under the head INCOME FROM OTHER SOURCE (IOS)” includes: The following list of  income shall be Chargeable to income-tax under the head “Income from other sources” namely:- Dividends; Income from machinery, plant or furniture belonging to the Assessee and let on hire, if the income… Read More »

Interest on Fixed Deposit is NOT TAXABLE: WRONG, Only Deduction of Rs 10000 for Saving Account Interest

Myth: Interest on fixed deposit is not taxable This is incorrect. People have an assumption that interest on fixed deposit is exempt same as interest on savings bank account. But it is wrong. Interest on savings account is exempt under section 80TTA upto Rs 10000/- and any interest above in saving account will be taxable… Read More »

Tax Treatment of Advance Money Forfeited/Retained under Section 51 Income Tax Act 1961: Without Transfer of Asset

Advance money forfeited till FY 2013-14 i.e. for AY 2014-15 related to capital asset/property for which negotiation for transfer was going on will be treated as capital receipt and will be reduced from the cost of acquisition of assets, but with effect from the 1st day of April, 2015 any advance money forfeited against capital assets… Read More »

Income Tax Deduction for LIC Commission: Ad hoc deduction to Insurance Agents of LIC

Income Tax Department through Circular No. 648, dated 30-03-1993, has allowed ad hoc deduction to agents of LIC on commission Income received during the year. Deduction is allowed to agents having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the… Read More »