Other Sources Income

Overview

Income which does not exempt and cannot be charged under the heads of salary, income from house property, profits and gains from business or profession, or capital gains, form income from other sources for taxation purpose. All dividends obtained are taxable below the head of income from other sources. Interest from collaterals and bonds are similarly taxed under Income from other sources. Gifts such as any amount of money and movable or immovable property that’s received without consideration are also taxable under this head.

TYPES OF ITR FORM

ITR-1: For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest, etc.), and Agricultural Income up to Rs.5 thousand(Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares).

ITR-2: For Individuals and HUFs do not have income from profits and gains of business or profession.

ITR-3: For individuals and HUFs having income from profits and gains of business or profession

ITR-4: For Individuals, HUFs, and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE

ITR-5: For persons other than Individual, HUF, Company (Partnership Firm, Aop / Boi)

ITR-6: For Companies other than companies claiming exemption under section 11

ITR-7: This form is relevant for all people who are required to file tax returns under the Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139 (4E), or 139 (4F) that mainly includes Trust, University, etc.

Due Dates For Filing Income Tax Returns :

Category of Assessee	Due Date
Individual	31st July
Body of Persons (BOP)	31st July
Hindu Undivided Family ( HUF)	31st July
Association of Person (AOP)	31st July
Business (Audit Cases)	30th September

Our Process

Step 1

Discussion and collection of basic information

Step 2

Choosing applicable ITR Form

Step 3

Collection of Documents

Step 4

Computation of Tax Liability

Step 5

Form Filling & Submission

Step 6

Sharing Filled Documents

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 800
- - Income From Salary
  - Income from other sources
  - Tax Planing & Guidance
  - Tax Payment Assistance
  - Return Filing
  - Dividend Income
  - Interest Income
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Premium
- ₹ 1500
- - Income From Salary
  - Income from other sources
  - Tax Planing & Guidance
  - Tax Payment Assistance
  - Return Filing
  - Dividend Income
  - Interest Income
  - Gift Income
- Purchase Now

Ultimate
- ₹ 2500
- - Income From Salary
  - Income from other sources
  - Tax Planing & Guidance
  - Tax Payment Assistance
  - Return Filing
  - Dividend Income
  - Interest Income
  - Gift Income
  - Capital Gain or Business Income
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Benefits

Taxable Income

If you have taxable income in India, you must record your ITR in India. This is appropriate for a person if his/her taxable income surpasses INR 2.50 Lakh. In case you are a Company, LLP, or Partnership Firm, you must file ITR irrespective of your profit or loss.

Financial Power

A good track record of consistent ITR Filing shows your financial strength and is significant in your regularity. This serves you to receive instantaneous bank credits and also a visa. Henceforth, it is advisable to file ITR on a routine basis.

Trustworthiness

Filing an ITR improves your reliability and your credit availing capacity from the bank aspect. Even if you are not accountable for ITR filing for any reason, it is a good practice to file the same. Your ITR helps as proof of your Income. No other document does this job.

Tax Refunds

For any reason, if your TDS has been deducted and the same is higher than your exact tax payable, such a refund request can only be done by filing an accurate IT return in time. You won’t notice your returns if you don’t file your ITR.

Move Forward Losses

If you have acquired any losses in your business on account of expenses or reduction, you must file your return to move ahead of those. The advantage of this can be availed once you have taxable income. Such losses, then, can be set off on taxable profits.

Avoiding Tax Notices

There are many measures defined under the Act, in which you may be assisted legal notification if you have not filed your ITR. Filing your ITR precisely and in time can assure you that you don’t have to meet any of these.

Documents Required

Form 26AS Tax Credit Statement

PAN & Aadhar Card

Income Tax Login Credentials

Bank statement if the interest received is above Rs. 10,000/-

Dividend Income Details & Interest income Details

Bank Account Number, IFSC Code

Any other income details along with nature of Income

Any Other Income or Investment Proofs that hasn't been declared or mentioned in Form 16.

Clear All Your Doubts !

I have received a dividend from an Indian company this year. Is this taxable as income from other sources?

Please note that from FY 2020-21 dividends will be taxable in the hands of recipient and tax will be computed as per normal slab. Erstwhile dividend was exempt under Section 10(34) of the Income-tax Act, 1961 and need not be shown under “other sources

What is the tax treatment of dividend received from a foreign company ?

The only dividend received from an Indian company is exempt from income tax in India. A dividend received from a foreign company is taxable as “Income from other sources” and you need to pay taxes at rates based on the income slab you fall under.

Is dividend received from mutual funds taxable?

Dividend received from mutual funds is also exempt from income tax under Section 10(35) of the Income-tax Act, 1961.

I have received prize money worth Rs 2 lakhs by participating in a game show. Is this taxable?

Yes. Prize money received from participating in the game shows in taxable income from other sources. Generally, taxes at the source would be deducted on such sum at the time of payment to you itself at the rate of 30%. Even if taxes have not been deducted, you may pay taxes on such income based on rates applicable to the income slab you fall under.

I have interest income from a fixed deposit, a recurring deposit, and a savings account. What is taxability? Do I have deductions available on such income?

All such interest income is taxable under “Other sources”. You will be liable to tax based on your income slab.

Further, you enjoy a deduction of up to Rs 10,000 on interest received from the savings account and recurring deposits. While senior citizens get a deduction of up to Rs 50,000 on their interest income from fixed deposits.

On the occasion of my marriage, I received Rs 1 lakh in cash from my father. Will this sum be taxed?

Money received from a “relative” is not taxable under the Indian tax laws. Further “relative” includes the father. Therefore, you will not be taxed on this sum you have received.

Can I deduct expenses from ‘income from other sources?

Yes, you can deduct expenses directly related to getting that income.

What are tax-saving FDs?

The tax-saving FDs come with a lock-in of 5 years. The amount you invest can also be claimed as a deduction under Section 80C subject to a maximum limit of Rs.1,50,000. But like a regular FD, the interest is fully taxable

I earn income solely from fixed deposits. Do I have to file an income tax return?

Any individual whose income exceeds Rs.2,50,000 during a financial year must file an income tax return in India. If the bank has deducted TDS and your income does not exceed Rs.2,50,000, then you must file a tax return to claim a refund on excess TDS deducted.

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