Q.Define 'Income from Other Sources' and explain why it is called a residuary Head of Income.

This is a direct recall question on the residuary nature of this Head.

It is 'residuary' because it exists only to catch what is left over after the other four Heads are considered.

Section 56 defines Income from Other Sources as income of every kind that is chargeable to tax, is not exempt under the Act, and does not fall under any of the first four Heads of Income named in Section 14 — Salaries, Income from House Property, Profits and Gains of Business or Profession, and Capital Gains. It is called a 'residuary' Head precisely because the Act does not attempt to list out every possible source of income exhaustively in advance; instead, it defines the first four Heads with reasonable precision and then uses Section 56 as a catch-all safety net for every other genuine income item — dividend, family pension, winnings, interest on securities, and any other residual receipt — that would otherwise escape taxation entirely for want of a Head to fall under.

Students sometimes define this Head only by giving examples (dividend, winnings, interest) without stating the actual RESIDUARY principle behind it — always state the general rule (catches what the other four Heads don't) before listing examples.