Sub-section 2 to section 56 enumerates various types of income which would be chargeable to tax under the residuary headSome examples of certain incomes normally taxed under this head are given below:
Interest on saving bank account, bank deposits (fixed, recurring), loans or company deposits,
Family pension (received by legal heirs of an employee) : Pension means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death. Family pension is taxable as income from other sources and a standard deduction of 1/3rd of pension or Rs 15,000 whichever is less is allowed.
Dividend : Dividend is the payment made by a company to its shareholders or members out of the profit earned by the company. The company is liable to pay dividend distribution tax at the rate of 12.5% in respect of dividend so declared. So, such dividend is exempt from tax in the hands of the shareholders to avoid the double tax treatment. However deemed dividend from an Indian company or any dividend from foreign company is taxable in hand of shareholder under the head Income from Other Sources
Any sum exceeding Rs. 50,000 received without consideration shall be treated as income provided that the sum of money is not received from any relative or on the occasion of marriage of the individual or under a will or inheritance etc.
Interest received from IT Dept. on delayed refunds,
Income from royalty,
Examiner-ship fees received by a teacher (not from employer),
Income from sub-letting of house property by a tenant,
Agricultural income from agricultural land situated outside India,
Remuneration received by Members of Parliament,
Casual receipts and receipts of non-recurring nature,
Director’s commission for standing as guarantor to bankers,
Winnings from Lotteries, Crossword Puzzles, Horse Races and Card Games,
Interest on securities,
Income from letting out of machinery, plant or furniture, etc.