Income from different sources

If income is not subject to income tax under any of the headings listed in section 14, items A to E, it is subject to income tax under the head "Income from other sources." This applies to any income that is not to be excluded from the overall revenue under this Act. Better concept on tax exemption can be seen here.

The following earnings, in particular, and without limiting the applicability of the general rules of the aforementioned sub-section, shall be subject to income tax under the heading "Income from other sources," namely:-

   (a) dividends;

  (b) income from the assessee's furniture, equipment, or machinery that is rented out if the income does not fall under the category of "Profits and gains of business or profession," which is exempt from income tax;

  (c) the income from such letting, if it is not subject to income tax under the heading "Profits and gains of business or profession," where assessee rents out buildings as well as machinery, plant, or furniture that belongs to him and the letting of the buildings is inextricably linked to the letting of the said machine parts, plant, or interiors;

  (d) income mentioned in clause (24) of section 2's sub clause (xi), provided that it is not subject to income tax under the headings "Profits and gains of business or profession" or "Salaries";

  (e) if a person or a Hindu undivided family receives any amount of money from anyone on or after September 1, 2004, but before April 1, 2006, without receiving any in exchange, the entire amount of such sum;

  (f) if an individual or a Hindu undivided family receives any quantity of money, the total value of which exceeds fifty thousand rupees, without consideration from any individual or individuals on or after the 1st of April 2006 but before the 1st of October 2009, the whole aggregate value of such sum.

Any amount of money received from a relative, on the event of the individual's marriage, under a will or as a legacy, in anticipation of the payer's death, from a local council, from a fund or foundation, university, hospital, or other educational institution, or from any trust or institution, or from a trust or institution registered under section 12AA is exempt from this clause.

"Relative" includes the individual's spouse, brother or sister, spouse's brother or sister, brother or sister of either of the individual's parents, any lineal ascendant or descendant of the individual, any lineal ascendant or descendant of the spouse of the individual, and the individual's spouse.

More information about deduction under section 80g.