Income from Other Sources

Income especially including under this head Section 56(2)

The following incomes shall be chargeable to income tax under this head-

  1. The dividend, other than the dividend referred to in section 115-O
  2. Income by the way of winning from lotteries, crossword puzzles, race including horse race, card game and other game of any sort or gambling or betting of any form or nature whatsoever.
  3. Any sum received under a Keyman Insurance Policy including Bonus, if such income is not chargeable to income tax under the Head of “PGBP” or under the Head of “Salaries”
  4. Income by way of interest received on compensation or enhanced compensation referred to in section 145(b)
  5. Any advance money forfeited in relation to a “Capital asset”: Any sum of money received as an advance or otherwise in the course of negotiation for the transfer of capital asset.
  6. Where an individual or HUF receives in any previous year, or on after 1.10.2009 the following Section 56(2)(vii)
Nature of ReceiptTaxable Amount
Receipt of any sum of money exceeding Rs. 50000Entire such money
(b)Receipt of any immovable property: Without Consideration- if stamp duty value exceeds Rs.50000With consideration – if Stamp duty value exceeds such consideration by more than Rs.50000
Entire such stamp duty

Entire such difference
(c) Receipt of any such property other than immovable propertyWithout Consideration – if FMV exceeds Rs. 50000With Consideration – If FMV exceeds such consideration by more than  Rs. 50000

Entire FMV
Entire such difference
  1. Share premium in excess  of fair market value  to be treated as income : 
Condition for ApplicabilityAssessee is a companyIt is received any consideration for issue of shares from any person being a resident Such consideration exceeds the face value of these shares
TaxabilityIf all the above conditions are satisfied, then the excess of consideration over the fair market value of these shares will be taxable under the head
Non-ApplicabilityThis clause, however, shall not apply where the consideration for the issue of shares is received by A venture capital undertaking from a venture capital company or a venture capital fund orA company from a class or classes of persons may be notified.
  1. Following Income, if these are not chargeable to income –tax under the head of GBP
    1. Income by way of interest on securities
    2. Income from Machinery, Plant or furniture belonging to the assessee and let on hire
    3. Any sum received by the assessee from  his employees as a contribution to any PF or Superannuation Fund or any Fund set up for the benefit of the employees
    4. Where an assessee lets on hire machinery or plant or furniture belonging to him also building if such letting is inseparable the income such letting.

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