FAQs on Income Tax VII – Income from Other Sources

1. What is meant by `Income from Other sources¿ under Income Tax Act, 1961?
Every type of income comes under a specified heads. But there are few incomes, which don't come under any of following heads:

• Salary
• House Property
• Profit In Business/ Profession
• Capital Gains

All such income is chargeable under Section 56(2) of Income Tax Act, 1961. There are following incomes which are taxed under this heads:

• Dividend income, paid by a company to an assessee
• Income from winning in lottery, crossword puzzles, races, card games, gambling or other such sports
• Income by way of an amount received by assessee from his employer as a fund for welfare of employee
• Interest income
• Income by letting on hire machinery, plant, furniture, building or other goods Income coming from insurance policy