Page 384 - DCOM301_INCOME_TAX_LAWS_I

Unit 13: Income from Other Sources

Grossing up of Income or interest Notes
100
Grossing up of Income or interest = Net Income/Interest ×
100 Rate of Tax
−
Rate of TDS for various incomes

Particulars of Payment Rate of Deduction
Interest Income on bank deposits (if interest exceeds ` 10,000 in a year) 10%
Winning from Lottery, crossword, puzzles (TDS applicable if price 30%
money exceeds ` 5,000)
Winning from horse races (if race winning exceeds ` 2500) 30%
Listed debentures (if interest exceeds ` 2500) 10%
Unlisted debentures (if interest exceeds ` 2500) 10%
Tax free commercial securities 20%

Caselet Computation of the Income from Other Sources in
India

The Computation of the income from other sources of Mr. X as per the details given below
for Financial Year 2013–14 will be:
Interest received on debentures 15000
Interest received from taxable bonds 20000
Interest received from Public Provident Fund 30000

Dividend received from mutual funds 10000
Interest received on Saving Bank Account 12000
Accrued Interest on Kisan Vikas Patra 8000
Accrued Interest on National Saving Certificates 5000

Interest received on Income Tax refund 4000
Gift received from a friend 60000
Winning from Television Shows 100000
Solution:
Income from other sources Amount
Interest received on debentures 15000

Interest received from taxable bonds 20000
Interest received from Public Provident Fund (Exempted) 30000 NIL
Dividend on Mutual Fund (Exempted) 10000 NIL
Interest received on Saving Bank Account 12000
Accrued Interest on Kisan Vikas Patra 8000
Contd...

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