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Direct Tax Assignment

The document discusses income from other sources as defined in the Income Tax Act of India. It covers what types of income fall under this head [Sec 56], expenditures allowed as deductions [Sec 57], and sums not allowed as deductions [Sec 58]. Key points include that income from other sources is a residual head that covers income not taxable under other heads, and provides examples like dividends, lottery winnings, and interest received.

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khushi shah
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© © All Rights Reserved
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39 views

Direct Tax Assignment

The document discusses income from other sources as defined in the Income Tax Act of India. It covers what types of income fall under this head [Sec 56], expenditures allowed as deductions [Sec 57], and sums not allowed as deductions [Sec 58]. Key points include that income from other sources is a residual head that covers income not taxable under other heads, and provides examples like dividends, lottery winnings, and interest received.

Uploaded by

khushi shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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sections

WELCOM
Sec 56
Sec 57
Sec 58

about
INCOME FROM OTHER

E SOURCES
NAME- DHARMI SHAH
DEPARTMENT/ROLL NO -TYBMS A 556
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INCOME FROM
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OTHER SOURCES
• RESIDUARY IN NATURE

• INCLUDES INCOME WHICH ARE NOT


TAXABLE UNDER OTHER HEADS OF
INCOME

• ONE OF THE HEADS OF INCOME


CHARGEABLE UNDER INCOME TAX ACT
INCOME FROM OTHER
SOURCES
• ANY INCOME NOT COVERED IN OTHER
FOUR HEADS OF INCOME IS CHARGED
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UNDER IFOS
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• ALSO KNOWN AS RESIDUARY HEAD OF
INCOME

• ALL INCOMES EXCLUDING SALARY ,


CAPITAL GAINS , HOUSE PROPERTY OR
BUSINESS /PROFESSION ARE INCLUDED

• (EXCEPT THOSE WHICH ARE EXEMPT


UNDER IT ACT )
Section Section Section
56 57 58

sections
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Incomes Expenditures Sum not
taxable only allowed as allowed as
in IFOS deductions deductions
Incomes taxable only in Income from Other Sources

• Dividend Income

• Income earned from winning lotteries, crossword puzzles,


races (including horse race), gambling or betting of any
kind

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services

Sec 56
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about
• Money or movable/immovable property received without
consideration or inadequate consideration during previous
year

• Interest on compensation or enhanced compensation


received

• Advance money received or money received in negotiation


for transfer of a capital asset (only if the money is forfeited
Incomes taxable under IFOS, only if not taxable
under Profits and Gains of Business or Profession
(PGBP)

• Any sum contributed towards provident funds,


ESI, etc. by employee to the employer, only if

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Sec 58
Sec 57

Sec 56

about
not deposited in the relevant fund

• Interest earned on Securities

• Income received from the letting of a plant,


machinery or furniture, with or without
building.
Incomes taxable under IFOS, only if not taxable under PGBP
or Salaries

• Keyman Insurance Policy


• Salary of MP/MLA

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Sec 58
Sec 57

Sec 56

about
Income Computation and Disclosure Standards
•  Section 145 states that Income from Other Sources must be
computed on the regular accounting methods followed by
the assesses.
• It can be either cash or mercantile system of accounting.
The Central Government has notified Income Computation
and Disclosure Standards to be followed while computing
the income.
Section 57- Expenditures allowed as deductions

•Expenses incurred for realization of dividend or interest


income

•Deductions to the extent amount remitted within due date are


authorized in respect to contribution towards funds for the

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welfare of employees

Sec 56
Sec 58

about
Sec 57
•Family Pension- deduction is allowed to the extent of 33-
1/3% of pension or Rs. 15000 whichever is less

•Deductions for current repairs, insurance and depreciation,


will be allowed for income earned by way of lease rental

•A deduction equal to 50% will be allowed for interest


received on compensation or enhanced compensation.
Section 58 - Sum not allowed as deductions while
computing taxable income

• Personal expenditure

• Interest or salary payable outside India without TDS


deduction

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Sec 58
Sec 57
Sec 58

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• Wealth tax

• Expenditure concerning winnings from lotteries, crossword


puzzles, races, and gambling, etc.

• Expenses specified in Section 40A

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