Income form Other Sources
Interest income
1. Saving Bank Account – Interest that gets credited on your savings bank account balance must be declared in your tax return under income from other sources. Bank does not deduct TDS on savings bank interest.
Deduction under section 80TTA : For a residential individual (age of 60 years or less) or HUF, interest earned upto Rs 10,000 on Saving account balance in a nationalized , cooperative or post office bank is exempt from tax
2. Fixed Deposit and Recurring Deposit – Interest earned on Fixed and recurring deposits with Bank is fully taxable under income from other sources. Senior citizens will have an exemption upto Rs 50,000 on the interest income they receive from fixed deposits with banks, post offices etc under Section 80TTB.
Banks are required to deduct tax (TDS) when interest income from deposits held in all the bank branches put together is more than Rs.40,000 in a year. A 10% TDS is deducted if PAN details are available. It is 20% if the bank does not have your PAN details. In case your total income is less than taxable limit, the refund of this TDS can be taken by filing an Income Tax return.
3. Other Interest Income – Other interest received such as interest on debt instruments, Loans and advances is fully taxable without any deductions.
Winning from lottery, Contests, TV shows
Money received from winning the lottery, Online/TV game shows, Contest etc., will be taxable under the head Income from other Sources at the flat rate of 30%. No Deductions are allowed from such income.
Family Pension
If an individual collects pension on behalf of someone who is deceased, then it must be shown as income under income from other sources. A deduction of Rs 15,000 or one-third of the family pension received whichever is lower from the Family Pension Income is allowed.
Rental Income of Movable Property
Income from machinery, plant or furniture belonging to taxpayer and let on hire, if income is not chargeable to tax under the head ‘Profits and Gains of Business or Profession is chargeable under head Income from other sources. Rent of Vacant land is also included in this head