Any income which is taxable under the Act but does not find place under any of the first four heads of income (i.e., Salaries, House Property, Business and Capital Gains) will be assessable under this residuary head 'Income from Other Sources'
The following incomes shall be chargeable to income tax under the head Income from Other Sources':
(1) Dividends.
(2) Income from winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.
(3) Any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set-up under Employees' State Insurance Act, 1948.
(4) Income by way of interest on securities.
(5) Income from machinery, plant or furniture let on hire if the income is not chargeable to income tax under the head 'Profits and Gains of Business or Profession'.
(6 ) An individual or HUF receives, in any previous year from any person or persons :
Asset
(a) Any sum of money, without consideration, the aggregate value of which exceeds ₹50,000 (Amount to be included in income The whole of the aggregate value of such sum.)
(b) Any immovable property:
(i) without consideration, the stamp duty value of which exceeds ₹50,000;
(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding ₹ 50,000. ( The stamp duty value of such property. The stamp duty value (on the date of agreement) of such property as exceeds such con- sideration.
(c) Any property other than immovable property:
(i) withoput consideration, the aggregate fair market value of which exceeds₹ 50,000;
(ii) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding₹50,000. (The whole of the aggregate fair market value of such property. The aggregate fair market value of such property as exceeds such consideration)
1. Dividends.
Meaning. In ordinary language dividend means the sum received by a shareholder of a company on the distribution of its profits.
Dividends-Income of which year.
(1) Normal Dividend. Any dividend declared by a company at its annual general meeting shall be deemed to be the income of the previous year in which it is so declared.
(2) Interim Dividend. An interim dividend is one which is declared by a company at any time prior to its annual general meeting for the year. Any interim dividend shall be deemed to be the income of the previous year in which the amount of such dividend is unconditionally made available by the company to the member who is entitled to it.
Taxation of Dividends
(a) Dividends (including deemed dividends) distributed by a domestic company. Such dividend is exempt.
(b) Dividends from a Co-operative Society.
(C) Dividends from a foreign company.
(d) Tax payable by a domestic company .
(e) Tax payable by a shareholder.
2. Income from units of Specified Company or a Mutual Fund
(a) Such income is exempt in the hands of unitholders.
(b) The income distributor is liable to pay tax at the specified rates.
3.Winnings from lotteries, (gambling or betting)
4.. Interest on Securities
The income from interest on securities is chargeable to tax as under :
(i) It is taxable under the head 'Business or Profession' if securities are held as stock-in- trade;
(ii) It is taxable under the head 'Other Sources' if securities are held as investments.
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