Advanced Tax laws And Practice Income under head Other Sources

Advanced Tax laws And Practice Income Under Head Other Sources

Income Under Head Other Sources (IFOS)

 One of the five heads of income payable under the Income-tax Act 1961 is income from other sources. Any income not covered by the other four heads of revenue is taxable on the basis of income from other sources and is also known as the residual head of revenue. All wages, capital gains, household property or company & occupation (PGBP) excluded profits are included in IFOS, except those exempted under the Income Tax Act.

 

Profits of a dividend other than the dividend referred to in section 10 (34).

Money gained from winning lotteries, crossword puzzles, races, gambling or betting of some sort (including horse races), even though the assessee claims to gain such profits from dealing in such activities.

Money or movable/immovable property obtained during the previous period without consideration or insufficient consideration

Interest earned on compensation or increased compensation.

Earned money in cash or in kind.

(a) any amount of money obtained without consideration and whose aggregate value exceeds Rs. 50,000 shall be taxable under this heading for the entire aggregate value of that sum.

 

b) (i) any immovable property received without consideration, the stamp duty value of which exceeds Rs. 50,000, the stamp duty value of such property shall be taxable under income from other sources.

 

b) (ii) any immovable property received for a consideration which is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, the stamp duty value of such property as exceeds such consideration shall be chargeable to tax under income from other sources.

 

Where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken.

 

However, this exception shall apply only in a case where the amount of consideration referred to therein, or a part thereof has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property.

 

5. c) any property, other than immovable property

 

(i) without consideration, the aggregate fair market value of which exceeds Rs. 50,000, the whole of the aggregate fair market value of such property;

 

(ii) for a consideration that is less than the aggregate fair market value of the property by an amount exceeding Rs. 50,000, the aggregate fair market value of such property exceeds such consideration.

 

Shall be chargeable to tax under Income from other sources.

 Incomes taxable under IFOS, only if not taxable under Profits and Gains of Business or Profession (PGBP):

 Any sum contributed towards provident funds, ESI, etc. by an employee to the employer, only if not deposited in the relevant fund i.e. if the employer deposits such amount on or before the due date of deposit applicable for such deposit, he will be allowed a deduction for the same.

Interest earned on Securities;

Income received from the letting of a plant, machinery or furniture, with or without a building.

 

Visit and Read on Our Blog Section Where You Will Get Much More Knowledgeable stuff for CS Executive Preparation.

 

Prepare smartly for CS EXECUTIVE  with our CS Executive Course Via.. CS Executive online lectures Learn direct from your home/office. We here at Takshila Learning provide you the CS Executive Video Lectures, CS Executive Pen drive Classes along with CS Executive STUDY MATERIAL 2021 and CS Executive New Syllabus Study Material to help you prepare for your CS Executive Exam with the utmost ease.

Visit Takshila Learning for More Information About CS Executive Course

Call at 8800999280 / 8800999283 / 8800999284