OTHER SOURCES OF INCOME

Income that does not fit into any of the other categories will be classified as 'Income from Other Sources.'

INCOME FROM INTEREST:
Interest earned at a Savings Bank must be shown in the tax return under the heading 'Income from Other Sources.' It is important to remember that if the bank account is a Savings Bank, the bank does not deduct Tax Deducted at Source. Interest earned on a fixed deposit account or a recurring deposit account is taxable, while interest earned on a savings bank account or a post office savings account is deductible to a limited extent.

DEDUCTION IN ACCORDANCE WITH SECTION 80TTA:
A tax payer who is 60 years old or younger, or a Hindu Undivided Family, can claim exemption under this clause. The maximum amount of money that can be exempted under this section is Rs 10,000. Only if the interest is received from the following account is the deduction allowed:
• Savings bank account
• Savings bank account with a co-operative society that does banking
• Savings bank account with a post office.
If a taxpayer is over the age of 60, he or she is not eligible to claim a deduction under this section.

FIXED DEPOSITS:
Interest earned on a fixed deposit is included in the income tax return, and the person must pay tax on the same amount at the rate that applies to him or her. When interest is generated, even if it is not paid, TDS might be deducted.

DEDUCTION IN ACCORDANCE WITH SECTION 80TTB:
A tax payer who is over the age of 60 can seek exemption under this section. This provision allows for a maximum exemption of Rs 50, 000. Only if the interest is received from the following account is the deduction allowed:
• Fixed deposits
• Savings bank accounts.
• If you have a savings account with a co-operative society that does banking
• if you have a savings account with a post office; or if you have a term deposit.
A tax payer who is 60 years old or younger is not eligible to claim a deduction under this clause.

AVOIDING TAX DEDUCTIONS ON FIXED DEPOSITS AT THE SOURCE:
When interest revenue from deposits totals more than Rs 40,000 in all banks in a year, banks are required to deduct tax. If a bank has a PAN, they must deduct the tax at a rate of 10%, and if they do not have a PAN, they must deduct the tax at a rate of 20%. Details of the same must be included in Form 26AS.

INCOME EXEMPT:
If a person withdraws money from a Public Provident Fund or an Employee Provident Fund after it matures, the entire amount is tax-free. It must be listed as exempt income under 'Income from Other Sources.'

PENSION FOR FAMILY:
If a family member has died and you are receiving a pension on their behalf, this income must be reported under the heading of 'Income from Other Sources.' There is a deduction that can be made under this term:
• 15,000 rupees; OR
• 1/3 Of the family's pension
THE FAMILY PENSION DEDUCTIBLE WILL BE THE LOWER OF THESE TWO AMOUNTS.

INCOME FROM LOTTERY, GAME SHOW, OR PUZZLE WINNINGS, ETC. :
If a tax payer receives money from a lottery, game show, or puzzle, for example, it will be taxable under the heading 'Income from Other Sources.' There is a 30 percent flat tax rate as well as a cess charge.

EXPENSES THAT CAN BE DEDUCTIBLE FROM CERTAIN INCOME SOURCES INCLUDE:
A taxpayer who obtains money from other sources is allowed to deduct expenses, just as corporations are allowed to deduct expenses from their earnings.