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tax return the due date for the 2018-19 taxation year is less than a week away, and if you have not already filed your RTI, you must you hurry Kartikey Kulshrestha, 23, a lawyer from Delhi, who presents his statement for the first time I do not want to be wrong at the last minute and, therefore, I take the help of a chartered accountant "As I am a professional, my income comes from income tax revenues of businesses or professions.
Whether you take the help of a professional or do it yourself, you need to know what sources of income you have. would have a single source of income – salary, business or professional income – there is a w of other heads counted as revenue sources. One of them is the income under the heading "income from other sources".
The Income Tax Act 1961 provides for five sources of income: wages, trade or occupation, real estate, capital gains and other sources. Income from other sources is the residual source of income, that is, any taxable income, but does not fall into the category of the other four heads
Here are five common types of income which must be reported under "other sources" while ITR files for 2018-19:
Interest Income
Banks and post offices pay interest on the balance of the savings accounts that you have with them. This interest must be reported under other sources of income, as well as interest earned on fixed deposits (FD), products generally purchased by risk averse individuals.
However, for an individual or undivided undivided family (HUF), for 19 AY, interest earned up to ₹ 10,000 per year on a savings account is exempt from tax in the same year. under section 80TTA of the Act. So, by filing your ITR, do not forget to ask for tax exemption on the interests of the savings account.
Dividend Income
The taxation of dividends received from shares of a corporation depends on the country of origin. "Dividends from domestic companies are normally exempt because the company declaring the dividend pays tax on the distribution of dividends, but if the total amount of the dividend received during the year exceeds ¥ 10 lakh, then it is imputable to the tax at the rate of 10%, "said Ankit Agarwal, general manager, Alankit Ltd.
If you have invested in shares of a foreign company, the dividends will be taxable at 39. Other sources However, if taxes are paid on such a dividend in the country where the company is based, you can apply for an exemption under the Double Tax Avoidance Agreement (DTAA), the Assume that you have invested in the shares of a foreign company abroad and that you have received a dividend of 1 million yuan, and that you have paid ₹ 10,000 d d cas cas cas.,,,,,,,,,,,,,,,,,,,,, on income in that country, and then while you're If your tax on this income is ₹ 30,000 (for the highest tax bracket of 30%), you can claim compensation of ₹ 10,000 and pay only ₹ 20,000 as tax. Family Pension
The pension received by a dependent family member of an employee after his death is known as a family pension and is considered income from the family. 39, other sources for the recipient. Dependent members include spouse, children under 25, unmarried daughter and dependent parents in some cases.
The pension purchased by family members is exempt from taxation, in case of unacknowledged pension equal to 33.33% of this income or ₹ 15,000, the lowest amount, is exempt from 39; tax. Thus, if a widow receives a pension of ₹ 30,000 per month or ₹ 3.6 lakh per year, she can claim an exemption of ₹ 15,000, which is the lowest of 1,1, 1.20 per year (33.33 per cent). ₹ 3.6 lakh) or ₹ 15,000. The remaining amount of ₹ 3.45 lakh (≤ 3.6 lakh minus 15,000) is taxed according to the applicable tax slab.
See also: How the standard deduction will be applied to the income of retirees
Gifts
The Act provides that any gift received in cash, at the demand, in check or at the specified badet of an individual or HUF, in excess of ₹ 50,000, is income from other sources. If the value exceeds ₹ 50,000, the total amount is taxed. Remember that the tax applies not only to gifts received in cash, but also to those received in kind, such as real estate (including land and buildings) and specified movable property such as jewelery, paintings , actions, obligations, archaeological collections. The gift is taxable only in the hands of the beneficiary.
However, there is no tax if the gift is received from specified parents, at the time of the marriage, by a HUF of its members, by the will and the inheritance and some
Lottery and Betting
"Winnings from lotteries, crossword puzzles, races (such as horse racing), card games, betting or betting are clbadified as income. other sources, "says Agarwal. In accordance with Section 115BB of the Act, all income from these sources will be subject to the 30% tax, with applicable taxes and surcharges. Not only are lottery and gaming revenues billed at the highest tax rate, but no deductions or exemptions are allowed on them. The winner can not even claim the basic exemption of ₹ 2.5 lakh, to which no income tax is charged.
What You Should Do
Whether the income is exempt or taxable, disclose it as ITR Deposit. "Although there are no penalties for non-disclosure of such income, but this allows taxpayers to keep track of the source of wealth if asked to explain in the course of any investigation or evaluation by the tax authorities, "said Amit Maheshwari. Ashok Maheshwary & Associates LLP, accounting firm.
Also, pay attention to the ITR form you choose. "While selecting the RTI, look at different sources of income, income from other sources and exempt income can be reported in any form (ITR-1 to ITR-4)," Suraj said. Nangia, Partner, Nangia Advisors LLP. In ITR-1 and ITR-4, all income may be disclosed except taxable dividends and income from winning lotteries or horse racing revenues, said Maheshwari
With contributions from Medha V
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