Income from other source (IFOS) includes any income which is not taxed under the following Income heads:
The Income From Other Source includes Bank Interests, Investment Interests, Dividend Income, Family Pension, Gifts, Royalty, etc.
Document Checklist for Income From Other Source
Income Tax Department (ITD) issues Permanent Account Number (PAN). It is an alphanumeric ID of a taxpayer who is liable to pay taxes. PAN enables the department to link all transactions of the “Person” with his “Income”. Hence it is the most essential document while filing ITR.
Aadhaar (Aadhaar Card) a 12 digit unique identification number issued by the UIDAI (Unique Identification Authority of India). It is mandatory for Resident Individuals to provide details of Aadhaar while filing ITR.
Form 26AS is a consolidated Tax Credit Statement. It has the following details:
- Details of TDS from the taxpayer’s income.
- Details of TCS from taxpayer’s payments.
- Advance Tax, Self Assessment Tax paid by the taxpayers.
- Details of the Refund received during the year.
- Details of any high-value transactions (for eg. Shares, Mutual Funds, etc.).
It is very important to check Form 26AS before e-filing the ITR. Since it has details of TDS deducted on Interest and Other Income by deductors.
A taxpayer can claim the deduction of certain Investments and expenses while filing ITR. Investments proofs, Donation Receipts, Fixed Deposit Statement, etc are required to claim Chapter VI-A deductions. These investments reduce the net taxable income of a taxpayer.
Bank Statement with IFOS transactions is an essential document to prepare ITR. It is important to look at bank statements to derive total income earned in the form of Interest, Dividend, Gift, etc.
Income from other sources is a residual income that cannot be taxed under other heads. It includes income from a savings bank account, Fixed deposits, Post office savings, Family pension, etc. It also includes any monetary/non-monetary gifts received by an individual.
Dividend received from an Indian company is exempt from tax. However, Dividend received from a foreign company is taxable as “Income from other sources”. And you need to pay taxes at rates based on the income slab you fall under.
Yes. When any individual receives any kind of lottery or price money it is taxable. It is converted under IFOS.
No. Gifts received on a wedding occasion is exempt from tax. Hence Rs, 1,00,000 will be exempted from tax. However, you should report the same while filing ITR.
Following are the documents required to file ITR:
-Bank Account Details
-Tax Payment Challan
-Original Return (if filed)