What type of income are included Income from Other Sources?

Income from Other Sources includes earnings that don't fit under Salary, House Property, Business or Profession, or Capital Gains. Here are some examples:

Interest Income: Money earned from savings accounts, fixed deposits, and other bank deposits.

Dividend Income: Earnings from investments in company shares.

Rental Income from Machinery, Plant, or Furniture: Money received from renting out machinery, plants, or furniture.

Winnings from Lotteries, Puzzles, and Game Shows: Money from winning lotteries, crossword puzzles, and game shows.

Gifts and Cash Prizes: Gifts or cash prizes received on special occasions or events.

Royalty Income: Money received for allowing the use of intellectual property like copyrights, patents, or trademarks.

Family Pension: Pension received by family members of a deceased employee.

Interest on Tax Refunds: Interest received on tax refunds from the Income Tax Department.

Commission or Brokerage Income: Money earned from providing services or facilitating transactions.

Annuity Income: Regular payments from annuity plans or insurance policies.

Exempt Income

Income from PPF and EPF withdrawals is tax-exempt. However, you must report this under 'Income from Other Sources' when filing your ITR. You can also check your ITR status online after filing.

Family Pension

If you receive a pension for a deceased person, it should be reported under 'Income from Other Sources'. You can deduct either Rs 15,000 or one-third of the pension received, whichever is less. The rest is taxed at the applicable rate.

Tax on Lottery Winnings, Puzzles, and Game Shows

Money from lotteries, game shows, races, card games, gambling, and betting is taxed at 31.2% (including cess).

Dividend Income

Dividends from investments like stocks are taxed under 'Income from Other Sources'. Since the Dividend Distribution Tax (DDT) is removed, individuals must include dividends in their total income and pay taxes based on their slab rates. You can deduct interest expenses up to 20% of the dividend income. If dividends exceed Rs 5,000, companies deduct TDS at 10%.

Agricultural Income

Agricultural income includes:

Rent or revenue from agricultural land in India.

Income from agricultural activities like tilling, sowing, planting, and harvesting.

Income from farm buildings used for agricultural operations.

Virtual Digital Assets (VDA)

Virtual digital assets (VDAs) include cryptocurrencies and NFTs. Gains or losses from selling VDAs are taxed at 30%, with specific rules for offsetting losses.

Income from Gifts

Under section 56(2)(vi) of the Income Tax Act, gifts exceeding Rs 50,000 in a financial year are taxed based on your income tax slab. Cash gifts over Rs 50,000 are taxable, and gifts in kind are taxable if their market value exceeds Rs 50,000.