How to calculate income tax on income from other source?

Tax queries 398 views 2 replies

Saheb Preet Singh

17 Points Posted on 03 April 2016

I am a salaried employee with income from other source.

My employer have deducted tax on source that is more than eligible tax ( Since I declared my investments late to the employer ) along with a rebate under section 87 a, as my total taxable income was less than Rs 5 lakh.

How should I calculate income tax on income from other source?

As far as I understand I should add my income from other source to total tax. Calculate tax as per my tax slab and then add educational cess ( 3% of tax ) to it minus TDS already deducted by employer and pay this amount.

After adding income from other source my total taxable income will be more than 5 lakh. Will I get rebate under section 87/a ( already rebated by employer )?

Can I adjust extra TDS deducted by employer in tax on income from other source ?

Where should I pay my additional income tax and what is the last date?

Replies (2)

Pranay Teja

Student

60 Points Posted on 03 April 2016

Dear Sir, if you are receiving the other source income net of taxes, gross it up and disclose it under other sources head. calculate total income, if it exceeds 5 lakh you can't claim rebate u/s 87 a... then deduct the TDS from salary and other sources income. remaining amount to be paid as self assessment tax. it should be paid prior to due date for filing return else interest shall be charged

RAJESH SHARMA

PAST CA FACULTY MEMBER AT NIFA INFOCOMP

104 Points Posted on 07 April 2016

if u are a salaried person as well as earning income from other sources....then first of all u have to calculate your taxable income from salary...after that calculate your income fro other sources...

something like this..

1 INCOME TAXABLE UNDER THE HEAD 'SALARY'

2 INCOME FROM OTHER SOURCES

1	Interest Income
2	Taxable Dividends Income, if any
3	Rental income from machinery, plants, buildings etc.
4	Others, Gross (excluding income from owning race horses)
5	Expenses / Deductions (Deductible under Section 57)
6	Depreciation (Deductible under Section 57)
7	Income from other sources [( 1 + 2 + 3 + 4) - ( 5 + 6 )] (other than from owning race horses and Winnings from Lottery) (Nil if loss)
8	Winnings from lotteries, crossword puzzles, races, etc. (taxable at special rate of 30%)
9	Income from other sources (including Winnings from Lottery but excluding owning race horses)
10	Receipts from owning and maintaining race horses
11	Deductions u/s 57 relating to Income from owning and maintaining race horses
12	Income from owning and maintaining race horses. ( 10 - 11 ) If loss, it will be carried forward for adjustment against income from this head in next four years.
12
13	Taxable Income from Other Sources
14	Carried Forward Loss from Owning Race Horses (if any)