UrbanPro
true

Take CA Coaching from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Don’t Ignore Income From Other Sources While Filing Tax Returns

F
FR Prashanth Reddy
01/07/2017 0 0

Taxpayers often ignore different types of income while filing their income tax returns. These incomes fall under ‘income from other sources’ category. This may happen due to the taxpayer’s unawareness about the taxability of such income or they hiding it intentionally from the tax authorities.

There are several heads of income like income from salary, income from capital gains, income from profession and business and income from house property for which you need to file ITR. There are, however, certain types of income that fall under the head ‘income from other sources’.

Income that comes under the income from other sources head must satisfy certain conditions. Firstly, income shouldn’t be exempt under the provisions of the I-T Act, and secondly, income should not fall under any other income head.

Incomes Falling under the Head Income from Other Sources

Let’s take a look at such incomes that can be mentioned under this head:

  • Other incomes: Interest on loans, interest received on unrecognisable PF, recurring deposits, interest received on delayed refund, National Savings Certificate, Senior Citizens Saving Scheme, rent from a vacant piece of land, Post Office Savings Scheme, interest received on bank deposits/ deposit with companies, income made in the form of insurance commissions and some perquisites fall under income from other sources

  • Dividend income: Dividends received from mutual funds and a domestic company are exempt from tax. However, if the dividend received from a domestic company is more than Rs. 10 lakh then the amount will be taxable at 10 percent. Moreover, the dividends received from a foreign company are taxable under the head income from other sources.

  • Gifts: Income made in the form of gift that exceeds Rs. 50,000 without proper consideration is taxable. However, if you receive a gift from a person and he qualifies as a relative under the Income Tax Laws, it is exempted from tax.

  • Interest on securities: Interest income earned through investment in securities will be taxable under this head.

  • Pension received by legal heirs of deceased: Pension received by legal heirs of a deceased person is taxable but not fully. They can claim a deduction on the amount @33.3 % or Rs. 15,000 whichever is less.

  • The amount received from winning lotteries, horse races, gambling, etc.: Any income received from winning lotteries, horse races, gambling and card games, etc., fall under this head, which is fully taxable at 30%.

  • Consequences of Ignoring Other Sources of Income

    It is important to match your income details with your Form 26AS to avoid any mismatch in the ITR filing. This can result in the following consequences:

    • You may receive a notice from I-T Department.

    • If you claim TDS but fail to report interest income, the Assessing Officer will consider your return as defective and will send a defective return notice under section 139(9).

    • If the A.O. determines that you have misreported or under-reported your income, then you will have to pay taxes due along with interest u/s 234B and 234C. He can even impose a penalty from 50 percent to 200 percent for misreporting or under-reporting of income u/s 270A.

0 Dislike
Follow 6

Please Enter a comment

Submit

Other Lessons for You

Small Mistakes that Students make during Professional (CA CS CWA) Exam preparation
Hi Friends, Most of us have faced the problem that even though we prepare well for the exam, we are not able to answer the questions exactly the way we want. In this article I’ll tell you some...

A short concept of Stock Turnover Ratio in Accountancy:--
Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period of time.The formula is given below:-- Stock Turnover= If a company has a high ratio (anywhere...
K

Most valuable learning tip - Keep mind fresh!
Before sitting to read, keep your mind fresh. Remove all unnecessary thoughts. Then only things will get register in mind!! All the best..
C

CA. CS. Mitali Trivedi

0 0
0

Memorizing the Balance Sheet
Liability Side Soman Rocked Sajan Under Coconut Palm Soman - Share Capital Rocked - reserves & Surplus Sajan - Secured Loans Under - Un Secured Loans Coconut - Current Liabilities Palm - Provisions ...

Keep the habit of quick notes while reading
Keep the habit of quick notes while reading
X

Looking for CA Coaching Classes?

The best tutors for CA Coaching Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take CA Coaching with the Best Tutors

The best Tutors for CA Coaching Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more