Quick Summary
Not every income earned by a taxpayer neatly falls under salary, house property, business or profession, or capital gains. The Income-tax Act, 2025 provides a separate residual category known as"Income from Other Sources" for such income. The Income Tax Department's explanatory document states that this head covers income that is not exempt from tax and is not chargeable under the other four heads of income - Salaries, Income from House Property, Profits and Gains from Business or Profession an
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
It's a residual category for income that isn't taxed under salary, house property, business/profession, or capital gains, provided it's not otherwise exempt.
Yes, gross income from lotteries, horse races, card games, gambling, and specified online games is taxable at a flat rate of 30% under this head, with no deductions allowed.
Dividend income is taxable in the hands of shareholders. From 1 April 2026, the gross amount of dividend declared and paid by a company will be taxable, and certain expenses related to realising the dividend are not deductible.
Generally, expenditure incurred wholly and exclusively for earning the income may be deductible, provided it's not personal or capital expenditure. However, specific disallowances apply, and no deductions are allowed for expenses related to lottery or gambling winnings.
Yes, family pension received by the family or heir of a deceased employee is taxable under this head, with a standard deduction available.
If an advance received for transferring a capital asset is forfeited because the transaction doesn't proceed, the forfeited amount is taxable under 'Income from Other Sources'.
CAclubindia
