Question

Describe the method of computing income under the head income from other sources

Answer 1

☛ All taxable income under this head is calculated according to the accounting method the assessee follows viz. ...

☛ The exceptions to this are dividend and interest income i.e. whatever the accounting method, assessees will have to declare and pay tax on dividend and interest earned during the previous year.

Answer 2

Section 14 of the Income Tax Act incorporates all wages under the subsequent titles:

Wages

Revenue from House Property

Savings and Profits from Business

Property Profits

Income from other sources

The cumulative income is determined by pounding all the income classes. The tax on the cumulative assessable income is then assessed according to the Income Tax slab valuations.

Although the tax laws for returns are identical, there are several rules for the calculation of income. The income from that source is discovered after implementing that particular set of rules.