Income-tax Act,1961
Act No : 43
Section :
Income from other sources 1
56. Income from other sources 1 (1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head "Income from other sources", if it is not chargeable to income-tax under any of the heads specified in section 14, items A to E. (2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the following income shall be chargeable to income-tax under the head "Income from other sources", namely:- (i)dividends; 2[(ia)income referred to in sub-clause (viii) of clause (24) of section 2;] 3[(ib)income referred to in sub-clause (ix) of clause (24) of section 2;] 4[(iC)income referred to in sub-clause (x) of clause (24) of section 2, if such income is not chargeable to income-tax under the head "Profits and gains of business or profession";] 5[(id)income by way of interest on securities, if the income is not chargeable to income-tax under the head "Profits and gains of business or profession";] (ii) income from machinery, plant or furniture belonging to the assessee and let on hire, if the income is not chargeable to incometax under the head "Profits and gains of business or profession"; (iii) where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery' plant or furniture, the income from such letting, if it is not chargeable to income-tax under the head "Profits and gains of business or profession". 2 Inserted by the Finance Act, 1965, w.e.f. 1-4-1965. Clause 2(24)(viii) has since been omitted by the Finance Act, 1988, w.e.f. 1- 4-1988. This clause too should be omitted. 3 Inserted by the Finance Act, 1972, w.e.f. 1-4-1972. 4 Inserted by the Finance Act, 1987, w.e.f. 1-4-1988. 5 Inserted by the Finance Act, 1988, w.e.f. 1-4-1989. ---------------------------------------------------------------------- 1.311 (ii) where separate figures as above are not available 33 1/2 per cent of the gross commission. In both cases the ad hoc deduction will be subject to a ceiling of Rs. 20,000. Gross commission will include first year as well as renewal commission, but will exclude bonus commission. Bonus commission is taxable and will be taken into account for purposes of computing the total income and no ad hoc deduction will be allowed from such bonus commission. [Circular No. 648, dated 30th March, 1993] 2. Interest on cumulative deposit schemes of private sector undertakings should be taxed on accrual basis only. [Circular No. 409, dated 12th February, 1985] 3. Interest on cumulative deposit schemes of government undertakings should be taxed only on accrual basis. [Circular No. 371, dated 21st November, 1983]
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