What is Income from Other Sources?

The IFOS full form is Income from other sources. As per section 56(1) of the Income Tax Act, it is considered the income that you earn from all other sources. In other words, if you are not able to declare the income under any head, then it will be considered under this head. 

Income from sources other than salary, house property, business or profession, and capital gain is declared under the Income from other sources. 

Income from Other Sources Examples

Here are some examples of Income from other sources:

• Interest Income: The interest earned on the FDs, savings accounts, recurring deposits, and other deposits in the bank.
• Cash prizes and Gifts: It includes the cash prizes and the gifts that you have received at any event or occasion.
• Family Pension: The pension that a family gets after the death of an employee is also considered under this head.
• Royalty Income: It includes the income that comes from the royalties of intellectual property like patents, copyrights, or trademarks.
• Dividend Income: It includes the dividends that come from the investments made in the shares of companies. 
• Agricultural Income: It includes the Income that comes from the rent or revenue generated from the agricultural land. It also includes the income earned from activities like sowing, planting, tilling, land cultivation, etc.
• Winnings from lotteries, games, and more: It includes the income that comes from winning a lottery, game shows, betting, etc. 

Deduction under section 80TTA  on Interest Income

Under Section 80TTA, there are some deductions on the interest income. Here they are:

• In a financial year, the interest earned by residential individuals or HUFs up to Rs 10,000 is exempted from Income tax.
• On the interest income that you have earned from the bank savings account, post office, or co-operative banks, deductions are allowed.
• The senior citizens are not allowed to claim the benefits under Section 80TTA.