Hello and welcome to Part 21 of the Income Tax education series brought to you by H&R Block, the global leader in filing Income Tax Returns.
Today we will understand what is included under the head ‘Income from other sources’.
Income from other sources is a head of income used to classify income that you earn from bank interests like savings account interest, fixed deposits interest, recurring deposit interest, interest from National savings certificates and Kisan Vikas Patra. Winnings from lotteries, games, puzzles, races and any other game are also included under this category of income. E.g. Shreeja has invested Rs. 10,000 in a 6 year bank fixed deposit scheme with an interest rate of 8.25%, she will receive an interest on the money invested of Rs. 825 in the first year.
This will be included under the head ‘Income from other sources’ in Shreeja’s return of income. She can disclose this amount to her employer and it will be reflected in her Form 16. Similarly if she earns an amount of Rs. 20,00,000 in lottery then this amount will also reflect in income from other sources. However it is interesting to note here that this winning from lottery will be taxed at a rate of 30% plus a surcharge if applicable and education cess.
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