Unit – V :: Income From Other Sources – Problems
[Link]. Calculate income from other sources from information given below:
(i) Winning from lottery ₹.1,00,000
(ii) Amount received from race winnings ₹. 50,000
Gifts received during the previous year 2024-25
(i) Received ₹.20,000 as gift from his friend
(ii) Received ₹.1,00,000 as gift from his elder brother.
(iii) Received ₹.1,40,000 as gift on his marriage
(iv) Received ₹.80,000 as gift from his NRI friend on 01-01-2025
(v) Another gift of ₹.18,000 received from his cousin.
Ans: Computation of Income from Other Sources for the A.Y. 2026-26
Income ₹. ₹.
(i) Winning from lottery 1,01,000
(ii) Amount received from race winnings 35,000
To be grossed up 35,000X100/70 50,000
Gifts Received
(i) Received ₹.20,000 as gift from his friend 20,000
(ii) Received ₹.1,00,000 as gift from his elder brother
(Gifts from relatives are exempted) Nil
(iii) Received ₹.1,40,000 as gift on his marriage
(Gifts on marriage are exempted)
(iv) Received ₹.80,000 as gift from his NRI friend on 01-01-25 80,000
(v) Received ₹.18,000 as gift from his cousin. 18,000
Total Gifts 1,18,000
Income from Other Sources 2,68,000
Note: Gifts from friends (Non-relative) are taxable as amount of such gifts exceeds ₹.50,000
during the previous year 2022-23.
[Link]. Compute income from the other sources from the particulars given below:
1. Interest on deposits with a company ₹. 10,000
2. University Remuneration on working as examiner ₹. 6,000
3. Royalty for writing books ₹. 60,000
(He claims to have spent 20,000 on writing these books)
4. Dividend declared by R. Co. on 01-03-2024 but paid on 01-05-2024 ₹. 6,000
5. Interim dividend paid on 01-05-23 ₹. 3,000
6. Stake money on race horses ₹.1,50,000
Horses are maintained by him and expenses on maintenance of
these horses are ₹.2,40,000
7. Family Pension received ₹. 36,000
Ans: Computation of Income from Other Sources for the A.Y. 2025-26
General Incomes u/s 56 (1) ₹. ₹.
1. Interest on deposits with a company 10,000
2. University Remuneration 6,000
3. Royalty for writing books 60,000
Less: Expenses 20,000 40,000
4. Family Pension 36,000
Less: Standard Deduction (36,000X33⅓%) 12,000 24,000
80,000
Specific Incomes 56 (2)
Dividend
(a) From R Co Exempted Nil
(b) Interim Dividend received on 01-05-24 Exempted Nil
Stake money on race horses 1,50,000
Less: Expenses on maintenance of horses 2,40,000
Loss to be C/F as it cannot be set off 90,000 Nil
Income from Other Sources 80,000
[Link]. Compute income from other sources of Mr. Krishna Murthy who held the following
investment during the previous year 2024-25.
(i) ₹.11,000, 10% Central Govt. Securities.
(ii) ₹.36,000, 10% Tax-free commercial securities
(iii) ₹.6,300 received as interest on Tax-free public limited company securities (listed)
(iv) ₹.7,200 received interest on Karnataka Govt. Securities.
(v) ₹.4,000 received as interest on Debentures of Deepak Fertilisers (listed)
(vi) ₹.30,000 13.5% securities of Paper Mills Co. (listed)
(vii) ₹.35,000, 11% Securities of Paper Mills Co (listed)
(viii) ₹.10,000, 15% Jaipur Municipal Corporation Bonds.
(ix) Dividend from Carona Ltd. ₹.4,000
(x) During the year he also got a prize in Karnataka State Lottery. The net amount received
by him was ₹.35,000. Interest on all securities is payable on 1st Jan. every year. Bank
charged ₹.200 as collection charges.
Ans: Computation of Income from Other Sources for the A.Y. 2025-26
Specific Incomes u/s 56 (2) ₹. ₹.
1. Dividend from Carona Ltd. Exempted
Interest on Securities
1. ₹.11,000 10% Central Govt. Securities 1,100
2. ₹.36,000, 10% Tax-free Commercial securities (3,600X100/90) 4,000
3. ₹.6,300 received as interest on listed Securities (6,300X100/90) 7,000
4. ₹.7,200 received as interest on Karnataka Govt. Securities 7,200
(No TDS)
5. 4,000 received as interest on listed Debentures Deepak
Fertilisers (No TDS by Co) 4,000
6. ₹.35,000 11% Securities of Paper Mill 3,850
7. ₹.30,000 13.5% Securities 4,050
8. ₹.10,000 15% Jaipur Municipal Bonds 1,500 32,700
Winning from Lotteries:
Net Prize 35,000 Gross 35,000X100/70 50,000
Gross Income 82,700
Collection Charges 200
Income from Other Sources 82,500
Note: No TDS on Interest on Debentures by Deepak Fertilisers Ltd. as the amount of interest
does not exceed 5,000 and other conditions (for exemption from TDS) are also fulfilled.
[Link]. Mr. Mukund furnishes the following information about his income for the previous year
2024-25. Compute his income under the head “Other Sources.”
(i) Dividend on Equity Shares ₹. 600
(ii) Dividend on Preference Shares ₹. 3,200
(iii) Income from letting on hire of building and machinery under composite lease ₹.17,000
(iv) Interest on bank deposits ₹. 2,500
(v) Director’s fees ₹. 1,200
(vi) Ground Rent ₹. 600
(vii) Income from undisclosed sources ₹.10,000
(viii) Income from Lotteries (Gross) ₹.10,000
The following deductions are claimed by him:
(a) Collection Charges of dividend ₹. 20
(b) Allowable depreciation on Building and Machinery ₹. 4,000
(c) Fire Insurance Premium on Building and Machinery ₹. 100
Ans: Computation of Income from Other Sources of Mr. Mukund for the A.Y. 2025-26
General Incomes u/s 56 (1) ₹. ₹.
1. Interest on Bank Deposits 2,500
2. Director’s Fee 1,200
3. Ground Rent 600
4. Income from disclosed sources 10,000 14,300
Specific Incomes 56 (2)
Dividend
(a) On Equity Shares - Exempted Nil
(b) On Preference Shares – Exempted Nil Nil
Winning from Lotteries 10,000
Rent of Building and Machinery 17,000
Less: Expenses – Depreciation 4,000
Fire Insurance Premium 100 4,100 12,900
Income from Other Sources 37,200
[Link]. From the following particulars for the year ended 31st March, 2025, compute the
income under the head “Income from Other Sources.”
Dividends ₹.25,200
Dividends ₹.12,000
Collection Charges in respect of Dividends @ 1% of dividend
Rent from letting out of a building along with Plant and Machinery ₹.30,000
Depreciation on Buildings ₹. 4,000
Insurance on Buildings ₹. 1,600
Office Expenses relating to Buildings ₹. 1,600
Repairs, Rates et., ₹.1,600
Ans: Computation of Income from Other Sources of Mr. Mukund for the A.Y. 2025-26
Specific Incomes 56 (2) ₹. ₹.
Dividend – Exempted Nil
Dividend – Exempted Nil
Nil
Less: Bank commission not allowed Nil Nil
Rent on Building, Plant & Machinery 30,000
Less: Expenses ₹.
Depreciation 4,000
Insurance 1,600
Office Expenses 1,600
Repairs & Rates 1,600 8,800 21,200
Income from Other Sources 21,200
[Link]. From the following particulars OF Mr. Eswar for the Previous year ended 31st March,
2025, compute his total income for the Assessment Year 2025-26.
He received: ₹.
(i) Director’s fee from a Company 10,000
(ii) Interest on Bank Deposits 3,000
(iii) Income from undisclosed sources 12,000
(iv) Winning from Lotteries (Net) 24,500
(v) Royalty on a book written by him 8,000
(vi) By giving lectures in functions 5,000
(vii) Interest on loan given to a relative 7,000
(viii) Interest on tax free debentures of a company
Listed in Recognised stock exchange) (Net) 3,600
(ix) Dividend on Shares 6,400
(x) Interest on Post Office Savings Bank 500
(xi) Interest on Government Securities 2,200
He paid ₹.100 for collection of dividends and ₹.1,000 for typing the manuscript of book
written by him.
Ans: Computation of Income from Other Sources of Mr. Eswar for the A.Y. 2025-26
General Incomes u/s 56 (1) ₹. ₹. ₹.
1. Director’s fees 10,000
2. Interest on Bank Deposits 3,000
3. Income from undisclosed sources 12,000
4. Royalty on Books (8,000 – 1,000) 7,000
5. Remuneration for delivering lectures 5,000
6. Interest on loan given to relatives 7,000
44,000
Specific Incomes 56 (2)
Dividend – Exempted Nil
Interest on Securities
(a) Interest on tax free listed securities
3,600 [gross = 3,600X100/90] 4,000
(b) Interest on Govt. Securities 2,200 6,200
Winning from Lotteries – Net ₹.24,500
Gross amount 24,500X100/70 35,000
41,200
Gross Income from other sources 85,200
Note: Interest on Post Office Saving Bank Account is exempted upto ₹.3,500.