Specific Incomes u/s. 56(2)

01/05/2021 0 By indiafreenotes

The receipts/incomes which are chargeable to tax under the head Income from Other Sources include the following:

(i) Interest on Bank Deposits, Loans or Company Deposits, Securities

(ii) Income from letting out of Machinery, Plant or Furniture etc. and also land which is inseparable from such machines, plant or furniture (if it is not chargeable as income from business/profession)

(iii) Any sum received under Key-man Insurance Policy including Bonus, if not charged under the head “Business or Profession” or “Salary”.

(iv) Winning from Lotteries, Crossword Puzzles, Races including Horse Races, Card Games and Other Games of any sort or from Gambling or Betting of any form or nature etc.

(v) Any sum received by employer from his/her/it’s employees as contributions to any provident fund or Superannuation fund or fund under ESI Act or any other fund for the welfare of such employees, but not deposited in the employee’s a/c by the due date of deposit.

(vi) When a closely held company issues its shares at a price which is more than its fair market value, the amount received by the company in excess of fair market value.

(vii) Income by way of Interest received on compensation or on enhanced compensation.

(viii) Any sum of money received by the transferor as an advance or otherwise in the course of negotiations for transfer of a capital asset which is not finally transferred and such advance is forfeited due to breach of contract on the part of transferee.

(ix) Any sum exceeding Rs.50,000/- received by any person without any consideration.

(x) For transfer of immovable property whose stamp value exceeds Rs. 50,000

a) The whole of stamp value, if consideration for transfer is nil; and

b) Where the stamps value is less than the consideration paid, the difference between the stamp value and the consideration paid is treated as income of the seller.

(xi) For transfer of movable property whose fair market value exceeds Rs. 50,000

a) The whole of fair market value, if consideration for transfer is nil; and

b) Where the fair market value is less than the consideration paid, the difference between the fair market value and the consideration paid is treated as income of the seller.

However, the sum of money or any other property received from any relative [means Spouse/ Brother/ Sister/ Brother or Sister of the Spouse/ Brother or Sister of either of the Parents/Any Lineal Ascendant or Descendant/ Any Lineal Ascendant or Descendant of the Spouse/ of the Individual] or on the occasion of marriage of the individual or under a will or inheritance or in contemplation of death of the payer/donor or from any local authority [as per section 10(20)] or from a fund/foundation/university/other educational institution/hospital/medical institution/any trust, institution referred to in clause(23C) of section 10 or any trust, institution registered u/s. 12AA, or from an individual by a trust created or established solely for the benefit of relative of the individual shall not be treated as an income from other sources.

(xii) Any compensation or other payment, due to or received by any person, by whatever name called, in connection with the termination of his employment or the modification of the terms and conditions relating thereto.

(xiii) Family Pension (received by legal heirs of an employee).

(xiv) Income from sub-letting of house property by a tenant.

(xv) Agricultural income from agricultural land situated outside India.

(xvi) Interest received from Income Tax department on delayed refunds.

(xvii) Remuneration received by Members of Parliament

(xviii) Casual Receipts and Receipts of non-recurring nature.

(xix) Income from Royalty, Insurance Commission

(xx) Examiner-ship Fees received by a teacher (not from employer).

(xxi) Director’s Commission for Standing as Guarantor to Bankers.

(xxii) Dividend on shares (if dividend distribution tax has not been paid.)