16 Aug 2018

Income Tax on Income from Other Sources

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CA Vikas Agrawal
M.com,CA
CA in Practice
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Income from other sources is one of the five heads of income that the Income Tax Act, 1961 broadly classifies income under. This category includes earnings which can't be accounted for under any of the other heads of income viz. Income from Salary, Income from House Property, Profits and Gains from Business or Profession and Income from Capital Gains.

All taxable income under this head is calculated according to the accounting method the assessee follows viz. accrual or cash basis. The exceptions to this are dividend and interest income i.e. whatever the accounting method, assessees will have to declare and pay tax on dividend and interest earned during the previous year.

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