Every income which does not fall under any of the four heads of income namely income from salary, house-property, business and profession, income from capital gains, such incomes will be charged under ‘Income from other sources” under section 56, of the Income Tax Act, 1961.
General Provisions of Sec. 56(1) as per Income Tax Act, 1961:
The following incomes are generally chargeable under the head “Income from Other Sources”:
- income from subletting;
- interest on bank deposits and loans;
- income from royalty;
- director’s fee;
- ground rent;
- agricultural income from a place outside India;
- director’s commission for underwriting shares of new company;
- examination fees received by a teacher from a person other than his employer;
- insurance commission;
- mining rent and royalty;
- casual income;
- salaries payable to a Member of Parliament;
- family pension received by family members of a deceased employee;
- in case of retirement, interest on employee’s contribution, if provident fund is unrecognized;
- income from undisclosed sources;
- gratuity paid to a director who is not an employee of the company.
General Provisions as per Sec. 56(2) of Income Tax Act, 1961:
The following 8 incomes are always taxable under the head “Income from Other Sources” –
1. Dividend: if not chargeable to income-tax under the head “Profits and gains of business of profession.
2.Winning from Lotteries etc: it includes any winning from lotteries, crossword puzzle, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.
3. Employees’ contribution towards staff welfare scheme.
4. Interest on securities, Interest on Debentures, Government securities/bonds is taxable under the head “ Income from other sources”.
5. Rental income of machinery, plant or furniture: Rental income from machinery, plant or furniture let on hire is taxable as income from other sources.
6. Rental income of letting out of plant, machinery or furniture along with letting out of building and the two meetings are not separable.
7. Sum received under Keyman Insurance Policy.
8. Gift: if any sum of money received during previous year without consideration by an individual or a HUF from any person or persons exceeds Rs. 50,000 the whole of such amount is taxable in the hands of the recipient as income from other sources.
Reference:
As Per Section 56(1), Of the Income Tax Act, 1961:
56(1): Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head “Income from other sources”, if it is not chargeable to income-tax under any of the heads specified in section 14, items A to E.
S. 2(31), 4 & 45 of IT Act, 1961 — Assessment — In the present case after the death of sole male member of the family, the only person left in the family was the widow of the deceased i.e., the assessee and three married daughters. The married daughters cannot be considered as members of the HUF of the late husband of the assessee, however, as per the provisions of Sec.6 of the Hindu Succession Act, the widow and three married daughters are heirs of class-1 and on the date of death, the property of the deceased would devolve on them in equal shares. Since the property of deceased has been sold out without dividing the same among the assessee and her three married daughters, the capital gains on the sale of the property would be assessable in the hands of the body of individuals (BOI) consisting of the assessee and her three married daughers. ITO Vs. Smt. Shanti Dubey (2011) 139 TTJ 502 (ITAT-Jab).
S. 2(31) & 4 of IT Act, 1961—Status—Status of AOP need not to be proved through an agreement since the business carried on by members together is proved through accounts recovered on search the assessment of assessee in that status is perfectly justified—CIT vs. T. George & M. Syed Alvi (2009) 223 CTR 471 (Ker).
Assessment—Sec. 2(31)(v),5(2), 9(1)(i)—IT ACT, 1961—ABC,INRE. [2012] 249 CTR 329 (AAR).
Reference:
As Per Section 2(31), Of The Income Tax Act, 1961-
“Person” includes—
(i) An individual,
(ii) Hindu undivided family,
(iii) A company,
(iv) A firm,
(v) An association of persons or a body of individuals; whether incorporated or not,
(vi) A local authority, and
(vii) Every artificial juridical person, not falling within any of the preceding sub-clauses.
[Explanation—For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains;]