Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residual income under the head “Income from Other Sources”.
Income chargeable to tax under the head “Income from other sources” shall include following:
- Dividend Income
- Income by way of winnings from lotteries, crossword puzzles, races including horse races, card games, gambling or betting of any form or nature whatsoever
- Interest on securities, if not taxable under the head ‘Profits and Gains of Business or Profession’
- Any sum received by an employer from his employees as contribution towards PF/ESI/ Superannuation Fund etc., if same is not deposited in the relevant fund and it is not taxable under the head ‘Profits and Gains from Business or Profession’.
- Income from machinery, plant or furniture belonging to taxpayer and let on hire, if income is not chargeable to tax under the head ‘Profits and Gains of Business or Profession’
- Composite rental income from letting of plant, machinery or furniture with buildings, where such letting is inseparable and such income is not taxable under the head ‘Profits and Gains of Business or Profession’
- Any sum received under Keyman Insurance Policy (including bonus), if not taxable under the head ‘Profits and Gains of Business or Profession’ or under the head ‘Salaries’
- Any sum of money or property received by an individual or HUF from any person shall be taxable under the head ‘Income from other sources’
- Interest received on compensation or enhanced compensation
- Family Pension
- Any compensation received by a person in connection with the termination of his employment or modification of terms and conditions relating thereto.
- Advance money received or money received in negotiation for transfer of a capital asset (only if the money is forfeited and it doesn’t result in the transfer of such asset).
- Any other income
Monetary gifts or property received by an individual or Hindu Undivided Family (HUF) which are chargeable to Tax.
The scheme of taxability of gifts are mentioned below;
- Sum of Money : If the following conditions are satisfied then any sum of money received (i.e, monetary gift may be received in cash, cheque, draft, etc.) by an individual/ HUF will be charged to tax:
- Sum of money received without consideration.
- The aggregate value of such sum of money received during the year exceeds Rs. 50,000.
- Movable Property :
- Without Consideration : The aggregate fair market value of the property, if it exceeds Rs 50,000
- Inadequate Consideration : The difference between the aggregate fair market value and the consideration, if such difference exceeds Rs 50,000
- Immovable Property :
- Without Consideration : The stamp value of the property, if it exceeds Rs 50,000
- Inadequate Consideration : The difference between the stamp duty value and the consideration, if such difference is more than the higher of Rs 50,000 and 5% of the consideration.
Monetary gifts or property received by an individual or Hindu Undivided Family (HUF) which are not chargeable to Tax.
In the following cases nothing will be charged to tax in respect of any sum of money or property received by an Individual or HUF without any consideration or inadequate consideration, if the same is received:
- from any relative; or
- on the occasion of the marriage of the individual; or
- under a will/ by way of inheritance; or
- in contemplation of death of the payer or donor as the case may be; or
- from a local authority as defined under Explanation to clause (20) of section 10 of the Income-tax Act, 1961; or
- from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10 or
- by any fund, trust, institution, any university, other educational institution, any hospital, other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or (applicable if the property is received on or after 1st day of April, 2017)
- from or by any trust or institution registered under section 12A or section 12AA; or
- from an individual by a trust created or established solely for the benefit of relative of the individual. )
- any sum received by the way which is not regarded as transfer accordance with section 47 (i)/(iv)/(v)/(vi)/(vib)/(vid)/(vii)
- “relative” means,—
- in case of an individual :
- spouse of the individual;
- brother or sister of the individual;
- brother or sister of the spouse of the individual;
- brother or sister of either of the parents of the individual;
- any lineal ascendant or descendant of the individual;
- any lineal ascendant or descendant of the spouse of the individual;
- spouse of the person referred to in items (2) to (6); and
- in case of a Hindu undivided family, any member thereof;
- in case of an individual :
- Property Means: A capital Asset of the assessee, namely –
- Immovable property being land or building or both
- Shares and securities
- Archaeological collections
- Any work of art or