FAQs

Under Section 56(2)(ix) of the Income Tax Act, 1961, any advance or other sum of money received in the course of negotiations for the transfer of a capital asset, which is subsequently forfeited due to the failure of the deal, is taxable as "Income from Other Sources" in the year of forfeiture.

Yes, income earned from subletting a property—where you are a tenant and rent out the premises to another party—is taxable under the head 'Income from Other Sources'. This is because you are not the owner of the property, and thus, the income doesn't fall under 'Income from House Property'.

Family pension received by the legal heirs of a deceased employee is taxable under 'Income from Other Sources'. A standard deduction of one-third of the pension amount or ₹15,000, whichever is less, is allowed from the family pension received.

Income earned from renting out machinery, plant, or furniture is taxable under 'Income from Other Sources' if it is not the primary business activity. If the renting is part of your regular business, the income would be taxed under 'Profits and Gains of Business or Profession'.

Yes, under Section 57 of the Income Tax Act, you can claim deductions for expenses incurred wholly and exclusively for earning income under this head. For example, commission paid to a banker for realizing interest income can be deducted. However, personal expenses or capital expenditures are not allowable deductions.

The gift is received from a non-relative, On the Occasion of Marriage, Under a Will or by Inheritance and from Local Authorities or Registered Institutions

U/s 80TTA, Any individual or HUF (other than senior citizen) who has income as Interest on deposits in savings account in Banks or Cooperative Society or Post office is allowed as deduction upto Rs. 10,000.

U/s 80TTB, An individual, being a senior citizen can claim deduction on interest from deposits including Savings and Fixed Deposits upto Rs. 50,000.

Actually, these winnings are subject to a 30% flat tax rate with no basic exemption cap. The person who pays out the prize money in this situation will often take tax at source (TDS) out of the winnings and just give you the remaining sum.

Most income under this head is taxed as per the individual's applicable income tax slab rates. Certain incomes, like lottery winnings, gambling, etc., are taxed at a flat rate of 30% under Section 115BB, plus applicable surcharge and cess.

Yes, winnings from online gaming, lotteries, crossword puzzles, card games, and other similar sources are taxable under 'Income from Other Sources'. Such income is taxed at a flat rate of 30%, plus applicable surcharge and cess, without allowing any deductions for expenses or allowances.

Failing to declare such income can lead to underreporting or misreporting income can attract penalties, Interest may be levied on the unpaid tax amount and Income Tax Department may issue notices seeking clarification or initiating scrutiny.