General Incomes u/s. 56(1)

01/05/2021 0 By indiafreenotes

As per section 56(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 first four heads specified in Section 14.

In other words, the following conditions must be satisfied before an income can be taxed under the head “Income from Other Sources”:

  • There must be an income;
  • Such income is not exempt under the provisions of this Act;
  • Such income is not chargeable to tax under any first four heads viz., “Income from Salary”, “Income from House Property”, “Profits and Gains of Business or Profession” and “Income from Capital Gain”.

Income from other sources is, therefore, a residuary head of income.