Income from other Source

Question 1

Consideration received for vacating the possession of building (S.39) (SS.1k)

Answer 1

K- any amount received by a person as consideration for vacating the possession of a building (or part thereof) , reduced by any amount paid by the person to acquire possession of building (or part thereof) shall be chargeable under the head “income from Other Source” in the tax year in which it was received and following 9 tax years in equal proportion.

Question 2

Gift received in kind (S.39) (SS 1,la)

Answer 2

la- Any fair market value of any property received without consideration or received as gift. However, if gift is received from relatives (as defined in Chapter 5), it will not be included in income from other source.

Question 3

Gift in cash (S.39) (SS.3)

Answer 3

3- Any amount received as:
- loan
- advance
- deposit for issuance of shares or
- gift
by a person in a tax year from another person (not being a banking company or financial institution) otherwise than by:
- a crossed cheque drawn on a bank or
- a banking channel from a person holding a National Tax Number
shall be treated as “Income from Other Source” for the tax year in which it was received.

Question 4

Interest on National Saving Deposit Certificate (S.39) (4A)

Answer 4

4A- Where
a- any interest on investment in National Savings Deposit Certificates (including Defence Savings Certificate) is paid to a person in arrears; and
b- as a result the person is charged at higher rate of tax than was applicable if the profit (interest) was paid to the person in the tax year to which it relates ,
the person may , by notice in writing to the Commissioner , elect for the profit (interest) to be taxed at the rate that was applicable if the interest was paid to the person in the tax year to which it relates.