Some of the incomes that are not covered under any of the four heads of income such as salary, house property, capital gains and business and profession and such incomes, are included in the head of income from other sources.
The following incomes are liable to income tax under the head "Income from other sources":
- Dividends are always taxed under this head. However, dividends from domestic company are exempt from tax.
- Winnings from lotteries, crossword puzzles, races including horse races, card game and other game of any sort, gambling or betting of any form whatsoever, are always taxed under this head.
- Income recieved by way of interest on compensation or on enhanced compensation shall be chargeable to tax under the head "Income from other sources"
- Gifts received by an individual or HUF (which are chargeable to tax) are also taxed under this head .
Following incomes are charged to tax under this head, if not taxed under the head "Profits and gains of business or profession".
(a) Any contribution to a fund for welfare of employees received by the employer.
(b) Income by way of interest on securities.
(c) Income from letting out or hiring of plant, machinery or furniture.
(d) Income from letting out of plant, machinery or furniture along with building; both the lettings are inseparable.
e) Any sum received under a Keyman Insurance Policy including bonus.
Source: Income Tax Department