Understanding Income from Other Sources in Taxation
Delve into the world of income from other sources in taxation, covering specific incomes like dividends, winnings, employee contributions, interest on securities, and income from rentals. Explore the tax liabilities associated with different types of income and gain insights into the nuances of tax deductions in various scenarios.
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Presentation Transcript
Swapna Shaji Assistant Professor Department of Commerce(SF) Nirmala College , Muvattupuzha
INCOME FROM OTHER SOURCES Residuary head of income Any taxable income not falling under the first four heads is included in this head
Income chargeable under income from other sources includes, Specific incomes & Other incomes
SPECIFIC INCOMES Dividend 1) Share of profits received by the shareholders may be, Final dividend - income of the year in which it declared Interim dividend income of the year in which it is made available
TAX LIABILITY Dividend distributed by a domestic company is exempt under [sec 10(34)] Dividend from co-operative society is taxable Dividend from foreign company is taxable
2) Winnings from lotteries,crossword puzzles,races including horse races,card games,gambling or betting of any form Tax deducted at source @ 30% if Winning from lottery,crossword puzzles,card game,gambling or betting exceeds Rs 10000 OR Winning from horse race exceeds Rs 5000
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 If securities held as investments it is taxable under the head Income from other sources If securities held as stock in trade it is taxable under the head Profits & gains from business or profession
5)Income from machinery,plant or furniture let on hire If it is not the business- it is taxable under the head Income from other sources If it is a business-it is taxable under the head Profits & gains from business or profession
6) Income from composite letting If it is not the business- it is taxable under the head Income from other sources If it is a business-it is taxable under the head Profits & gains from business or profession
7) Amount received on key man insurance policy including bonus Where the sum is received by the organisation -taxable under the head Profits & gains from business or profession Where the sum is received by the employee - taxable under the head Income from salary In any other cases taxable under the head Income from other sources
8) An individual or HUF received from a non relative, with out consideration Sum of money exceeding Rs 50000- Full amount is taxable Any immovable property the stamp duty value exceeding Rs 50000- Stamp duty value taxable Any movable property the aggregate fair market value exceeding Rs 50000- Aggregate fair market value taxable
9) Interest received on compensation or enhanced compensation It is the income of the year in which it is received
10) Where a closely held company issues shares to anon resident person for a consideration exceeding face value Consideration received-Fair market value of the share is taxable
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