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Costing and Taxation · Class 12 Commerce

Ch 3Income from Other Sources — Class 12 Costing and Taxation, concept-first.

Income from Other Sources, the fifth and last of the five Heads of Income under Section 14, is deliberately a residuary head — a safety net that catches every item of income a person earns that does not fall under any of the first four heads (Salaries, Income from House Property, Profits and Gains of Business or Profes…

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Basis of Charge and Incomes Taxable under Other Sources

Income from Other Sources is the fifth and residuary Head of Income under Section 14 — it catches every item of income a person earns that is genuinely income, is not otherwise exempt under Section 10, and does not fall…

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Chapter contents

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3.1

Basis of Charge under Income from Other Sources

Income from Other Sources, the fifth and last of the five Heads of Income under Section 14, is deliberately a residuary head — a safety net that catches every item of income a person earns that does n…

3.2

Incomes Commonly Taxable under this Head

Beyond the two Section 56(2)-named categories studied in detail later in this chapter, a wide range of everyday receipts are routinely assessed under Income from Other Sources.

3.3

Winnings from Lotteries, Horse Races, Card Games and Crossword Puzzles

Section 56(2)(ib) specifically brings 'winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort, or gambling or betting of any form or nature wha…

3.4

Interest on Securities

Section 56(2)(id) charges 'income by way of interest on securities' under this Head, UNLESS the securities in question are held as stock-in-trade of a business the assessee actually carries on — in th…

3.5

Computation of Income from Other Sources — Simple Problems

Bringing every item studied in this chapter together, 'Income from Other Sources' for an assessment year is simply the total of every item chargeable under Section 56 for that year, after allowing whi…

Terms Introduced in the Chapter

This section collects, in one place, every term introduced in this chapter, for quick reference and revision.

More questions

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+Show 4 questions4 questions
  1. Q7Define 'Income from Other Sources' and explain why it is called a residuary Head of Income.Free
  2. Q8State the deductions allowed under Section 57 against Interest on Securities.Free
  3. Q9Miss Iyer received interest on Government securities of ₹30,000 (gross) during the year and paid ₹300 as bank collection charges for realisi…Preview
  4. Q10Why is no deduction allowed against winnings from lotteries and races, unlike most other incomes taxed under Income from Other Sources?Preview
+Show 6 questions6 questions
  1. Q1What is meant by describing 'Income from Other Sources' as a 'residuary head' of income? State the two conditions that must be satisfied bef…Free
  2. Q2State, with reasons, under which Head of Income each of the following is chargeable: (a) Dividend received on equity shares held as a long-t…Free
  3. Q3Mrs. Nair received a family pension of ₹90,000 during the year, following the death of her husband, a government employee. Compute the amoun…Preview
  4. Q4Mr. Verma won ₹2,00,000 in a State Government-run lottery. He had spent ₹500 during the year on purchasing lottery tickets, including the wi…Preview
  5. Q5Mr. Sarkar holds Government securities and received interest of ₹45,000 (net of tax deducted at source at 10%) during the year. He paid his…Preview
  6. Q6From the following particulars of Mr. Chatterjee for the previous year 2025-26, compute his total Income from Other Sources for the Assessme…Preview