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Unit 13: Income from Other Sources

6. Explain in brief the deductions are allowed under the head “Income from other sources”. Notes
7. Write a short note on expenses are not allowed to be deducted under the head “Income
from other sources”.

8. Anubhav has the following investments in the previous year ended 31st March, 2013:
(a) 7,160 received as interest on securities of Karnataka government.
(b) 9,000 received as interest on securities of a listed paper manufacturing company.
(c) 7,200 received as interest on the unlisted securities of a sugar company.

(d) 30,000, 11% securities (unlisted) of a textile company.
(e) 20,000, 10% Tamil Nadu government loan.
(f) 50,000, 13.5% listed debentures of Dolly Ltd.
Interest on all securities is payable on 30th June, and 31st December. The bank charges
1.5% commission on net realisation of interest as collection charges. Danny also received
` 15,000 as director’s fee from a company. His other incomes are – winnings from horse
race: 25,000 (gross); and interest on post office savings bank account: 6,000.
Find out taxable income of Anubhav from other sources for the assessment year 2013–14.
9. Sanjeev a Member of Parliament (MP) from Uttar Pradesh submits the particulars of his
income for the assessment year 2013–14. Compute his income from other sources:
(a) Salary as MP 4,60,000
(b) Daily allowances as MP 1,80,000

(c) Dividend received from a domestic company 60,000
(d) Winnings from horse race (Gross) 40,000
(e) Winnings from Sikkim State lotteries received (Net) 70,000
(f) Agricultural income in Sri Lanka 4,00,000

He received a royalty of 1,00,000 from a book of stories written by him. He claimed 12,000
as expenditure on stationery and typing. He lets out one of his buildings along with plant,
machinery and furniture for 50,000 per month. He claimed the following expenses as
deduction for this building – Insurance: ` 10,000; repairs: 15,000; depreciation: 40,000.
Interest credited to his recurring deposit account and cumulative time deposit account in
post office was 32,000 and 48,000 respectively.

Answers: Self Assessment

1. Section 56(2) 2. Keymans Insurance Policy

3. Taxable
4. Profits and gains from business and profession
5. 50,000 6. True
7. False 8. True
9. True 10. True

11. True 12. False
13. True 14. False

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