Income Tax on Additional Income than Salary
Income Tax on additional income than salary would include all the income that is received from any other source other than salary, for an individual. A brief description of what all could they be are mentioned here under.
All incomes that are not taxable under the following heads may be classified as income from other sources, but of course there could be exceptions to these depending upon the nature of activities being carried out by the person: 1. Salary 2. Income received from an owned house property. 3. All sorts of profits and gains received from a business or a profession. However the exception could be in case of capital gains depending on the specific situation.
The under mentioned would be chargeable under the head income from other sources. 1. Dividends received. 2. Annuities as defined in section 280D. 3. All winnings resulting from horse races, lotteries, card games etc. 4. A sum that one would receive from the employer as a credit towards any PF or superannuation fund. 5. All income from plant and machinery that has been let out, and in case the same has not been already charged for under the head profit from business or profession. 6. Sums of any sort received vide a keyman insurance policy.
Point to be noted here is that dividend income would not be chargeable for tax for assesses like 1. The local authorities. 2. A scientific research association that is approved. 3. A venture capital fund or company. 4. A news agency that is notified. 5. A pension fund from LIC. 6. Employee welfare funds 7. A Khadi approved trust or society. 8. Any authority irrespective of the name which is working for the development of village industries. 9. Regional projects funded by SAARC. 10. Approved political parties. 11. Some commodity boards and authorities. 12. Co operative societies for scheduled castes and tribes. 13. State Insurance funds for employees 14. Capital fund for Infra structure. 15. Trade unions that are registered.