Income From Other Sources Chapter- 13
(l) The fair market value of any benefit, whether convertible to money or not, received in
connection with the provision, use or exploitation of property; and
(m) Any amount received by the person as consideration for vacating the possession of a building
or part thereof. It shall be taxable as follows: [U/s 39(1) and (2)]
Amount received for vacating the possession
Less: any amount paid on acquiring the possession
Taxable under the head other sources = Additional amount received 10
(n) Any amount received by a person from Approved Income Payment Plan or Approved Annuity
Plan under Voluntary Pension System Rules, 2005.
(o) subject to sub-section (3), any amount or fair market value of any property received without
consideration or received as gift, other than gift received from relative as defined in sub-section
(5) of section 85.- Loan, advance, share deposit money or gift to be treated as income from other sources [U/s
39(3) and (4)]
Amount of loan, advance, share deposit money or gift received by a person in a tax year from
another person (excluding receipt from a company or financial institution) otherwise than by a
crossed cheque, shall be treated as income from other sources for the tax year in which it was
received.
This section shall not apply on the following cases:
(i) Where amount is received through banking channel from a person who holds a NTN; or
(ii) Advance against sale of goods or supply of services.
Example: Which of the following incomes are covered under the head “income from other sources”
(a) Dividend received by an individual.
(b) Salary received from employer.
(c) Profit on debt received by banking company.
(d) Rent against plot received as ground rent.
(e) Rent of building received from tenant.
(f) Rent from sub-lease of a property by tenant.
(g) Income from hire of factory (inclusive of plant and machinery).
(h) Amount received against sale of shares of a private limited company.
(i) Income from utilities connected with the rented premises.
(j) Received prize on prize bond.
(k) Amount of any unexplained income, investment or expenditure treated u/s 111.
(l) Any amount of loan received from friend through cash.
(m) Additional payment for delayed refund of income tax.
Solution: Income from other sources: (a), (d), (f), (g), (i), (k), (l) and (m) Income from salary: (b)
Income from property: (e) Income from business: (c) Capital gain: (h) Final Tax Regime: (j)- Profit on debt of previous year or years received in current year [U/s 39(4A and (4B)]
(a) Where any profit on debt derived from investment in National Saving Deposit Certificates and
Defence Savings Certificate, by a person related to previous year or years in the current year
that has resulted to taxable at a higher rate of tax as compared to the year to which the profit
on debt relates,
(b) The person may elect, by notice in writing to the Commissioner Inland Revenue that such profit
is to be taxed at the rate applicable to the year or years to which the profit on debt relates.