Costing and Taxation · Ch 3 — Income from Other Sources
Computation of Income from Other Sources — Simple Problems
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 whichever specific deduction Section 57 permits for that particular item.
The general computation shape
Income from Other Sources = Interest on Securities (grossed up if received net of TDS, LESS Section 57 deductions) + Dividend income (in full) + Family Pension (LESS the Section 57(iia) standard deduction) + Winnings from lotteries/races/games (the FULL amount, with NO deduction) + any other item chargeable under this Head.
Family Pension — Standard Deduction under Section 57(iia)
A deduction equal to the LOWER of (a) one-third of the family pension received, or (b) ₹15,000, is allowed against family pension — this ₹15,000 figure is the amount fixed directly in Section 57(iia) itself. (Under the New Tax Regime [Section 115BAC], this cap is separately enhanced to ₹25,000; this chapter's own problems use the Section 57(iia) figure of ₹15,000 unless a problem explicitly states the New Tax Regime applies.) No other deduction of any kind is allowed against family pension. …
Lower of one-third of the family pension received, or ₹15,000 (₹25,000 under the New Tax Regime) — the only deduction allowed …