Under the head other source income

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ROHIT KUMAR

ROHIT KUMAR (Querist)
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03 June 2014 ...............................................

ROHIT KUMAR

ROHIT KUMAR (Querist)
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05 June 2014 ...........................................

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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02 August 2025 Sure! Here’s a simple explanation about **Income under the head “Other Sources”** along with examples to help you understand:

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### What is Income Under the Head **Other Sources**?

Income which is **not taxable under any other head** in the Income Tax Act is taxed under the head **“Income from Other Sources.”**

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### Common Types of Income Under Other Sources:

1. **Interest Income**

* Interest on savings bank account
* Interest on fixed deposits (FDs)
* Interest on recurring deposits (RDs)
* Interest on securities/bonds

2. **Dividend Income**

* Dividend received from domestic companies (now taxable in hands of shareholders)
* Dividend from mutual funds (if applicable)

3. **Winning from lotteries, crossword puzzles, horse races, gambling, betting**

4. **Income from Gifts** (if taxable, like gifts received from non-relatives above ₹50,000)

5. **Rental income from machinery or plant, if not forming part of business income**

6. **Family pension** (partly taxable)

7. **Any other income not chargeable under other heads** (e.g., income from subletting of property if not business income)

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### Examples:

| Income Type | Taxability under Other Sources |
| ------------------------------------ | ------------------------------------------------------------- |
| Interest on FD/Bank Deposit | Fully taxable as per slab rate |
| Dividend from Indian company | Taxable in hands of shareholder as per new provisions |
| Lottery winning | Taxed at flat 30% without any deduction |
| Gift from non-relative above ₹50,000 | Taxable as income from other sources |
| Family Pension | Taxable after deduction of ₹15,000 or 1/3rd of pension amount |

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### Important Notes:

* **No expenses are allowed except for family pension** where standard deduction of ₹15,000 or 1/3rd of amount received is allowed.
* Income under this head is **added to total income and taxed as per the individual’s slab rates**, except for lottery or gambling income which is taxed at flat 30%.

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### Example Calculation:

If you have:

* Interest on FD: ₹50,000
* Dividend from shares: ₹10,000
* Lottery winning: ₹20,000

Then,

* Interest and dividend income will be added to your total income and taxed as per slab.
* Lottery winning will be taxed separately @ 30%.

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Would you like me to provide detailed tax planning or examples on any specific type of income under this head?

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