TAX SAVING FOR FREELANCERS, PROFESSIONALS, TRADER & WEB BASED AGENCIES

How to Calculate Tax on Income from Other Sources

How to Calculate Tax on Income from Other Sources
Income which does not come into any of the below four categories are considered as income from other sources. In the income return form, there is a separate column to enter the income from other sources.

    Salary income

    Income Paid to employee by employer

    Business income

    Income earned in business.

    House property income

    Income earned from rents.

    Capital gains income

    Income earned from investments such as shares,mutual funds.
Following are examples income earned from other sources as per income tax act of India.
  • Income received from machinery,furniture,plant etc.
  • Income gained from game shows,races,lottery,prizes etc.
  • Amount received by employer from employee if it is not shown in business.
  • Interest amount received from banks on saving bank accounts.
  • Post office savings account interest.
  • Monthly income scheme from post offices interests.
  • LIC pension.
  • Fixed deposits interest.
  • Personal loans interest.
  • Interest from bonds and debentures.
  • Gift amount.
  • Compensation interest.
  • NSS 1987 withdrawal
  • Income received from trust.
  • Interest amount from National Saving Certificate.
  • Agriculture income from abroad.
  • Rental income from land or ground.
  • Members of Parliament Salary.
  • Tax refunds income.
For better understandings these are the examples that serves how tax rules regarding income tax from other sources.The key elements are income type, income source, when the income was received.

Conclusion:
Incomes that are mentioned in section 56 of income tax act to be included in head of income from other sources.They are many other incomes, which are not specified in section 56 but included in income from other sources.

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