Income from other sources Flashcards
Sections 2(22)(a) to (e)]
Dividend income
Section 56
Incomes chargeable under IFOS
Section 115BB
Casual income chargeble to tax @30%
Section 56(2)(vii)
Any sum of money or value of property received without consideration or value of property, other than immovable property, received for inadequate consideration to be subject to tax in the hands of the recipient, being an individual or HUF
Section 56(2)(viia)
Transfer of shares without consideration or for inadequate consideration to attract the provisions of section 56(2) in case of recipient firms and companies also
Section 47(via)
Transfer of shares held in an Indian company, in a scheme of amalgamation, by the amalgamating foreign company to an amalgamated foreign company
Section 47(vic)
Transfer of shares held in an Indian company, in a scheme of demerger, by the demerged foreign company to a resulting foreign company
Section 47(vicb)
Transfer by a shareholder, in a business reorganization, of shares held in the predecessor co-operative bank, in consideration of the allotment of shares in the successor co-operative bank.
Section 47(vid)
Transfer or issue of shares by the resulting company, in a scheme of demerger, to the shareholders of the demerged company in consideration of demerger of the undertaking.
Section 47(vii)
Transfer by a shareholder, in a scheme of amalgamation, of shares in the amalgamating company in consideration of allotment to him of shares in the amalgamated Indian company
Section 56(2)(viib)
Consideration received in excess of FMV of shares issued by a closely held company to be treated as income of such company, where shares are issued at a premium
Sections 56(2)(viii)
Interest received on compensation/enhanced compensation deemed to be income in the year of receipt and taxable under the head “Income from Other Sources”
Rama Bai v. CIT (1990) 181 ITR 400
, held that arrears of interest computed on delayed or on enhanced compensation shall be taxable on accrual basis. The tax payers are facing genuine difficulty on account of this ruling, since the interest would have accrued over a number of years, and consequently the income of all the years would undergo a change.
(iii) Therefore, to remove this difficulty, clause (b) of section 145A provides that the interest received by an assessee on compensation or on enhanced compensation shall be deemed to be his income for the year in which it is received, irrespective of the method of accounting followed by the assessee
Section 56(2)(ix)
Advance forfeited due to failure of negotiations for transfer of a capital asset to be taxable as “Income from other sources”
Section 10(19)
Family pension received by a widow of a member of the armed forces
Where the death of the member occurred in the course of the operational duties is exempt
