Deductions from Income from Other Sources [Sec. 57]

The following expenditures are allowed as deductions from income chargeable to tax under the head ‘Income from Other Sources’:
S.N.	Section	Nature of Income	Deductions allowed
1	57(i)	Dividend or Interest on securities	Any reasonable sum paid by way of commission or remuneration to banker or any other person for purpose of realizing dividend  or interest on securities

Gifts not chargeable to tax [Sec. 56(2)(vii)]

Any sum of money or property received by any person [on or after 01-04-2017] in the following circumstances shall not be chargeable to tax:

a) Gifts received from relatives;

Income Chargable under Income from Other Sources

Income From Other Sources

Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”.

Who should file Income Tax Return!!!!

Every individual has to file the return of income if his total income (including income of any other person in respect of which he is assessable) without giving effect to the provisions of Long Term Capital Gain 10(38), 10A, profit from 100% EOU 10B or 10BA or Chapter VIA (i.e., deduction under section 80c to section 80U), exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption limit.

Deduction in Income from House Property

Deductions:
Description	Nature of Deductions
Municipal Taxes	Municipal taxes including service-taxes levied by any local authority in respect of house property is allowed as deduction, if: a) Taxes are borne by the owner; and b) Taxes are actually paid by him during the year

Computation of income from House Property

Income from a house property shall be determined in the following manner:
Particulars	Amount
Gross Annual Value	-
Less: Municipal Taxes	-
Net Annual Value	***
Less: Standard deduction at 30% [Section 24(a)]	-
Less: Interest on borrowed capital [Section 24(b)]	-
Income from house property	***

Taxability of Retirement Benifits under Income from Salary

Leave Encashment
No.	Section	Particulars	Taxability/Exemption
1	10(10AA)	Encashment of unutilized earned leave at the time of retirement of Government employees	Fully Exempt

Exemptions and Deductions from Salary Income

A.	Allowances
No.	Section	Particulars	Taxability/Exemption
1	10(13A)read with Rule 2A	House rent allowance	Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai) c) Rent paid minus 10% of salary * Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent.i.e.house is self occupied. ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10-10-2013].

Defination of Salary as Per Income Tax Act

Salary  include:

a) Wages

b) Annuity

c) Pension

d) Gratuity

e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages

f) Advance of Salary

g) Leave Encashment

Rates for Tax Deduction at Source(TDS) for FY 2017-18 (Company)

 

Rates for tax deduction at source-In the case of a company
[As amended by Finance Act, 2017]
[For Assessment year 2018-19 & Fy 2017-18]

Rates for Tax Deduction at Source(TDS) for FY 2017-18 (A person other than a company)

Rates for tax deduction at source-In the case of a person other than a company
[As amended by Finance Act, 2017]
[For Assessment year 2018-19 & Fy 2017-18]

COST INFLATION RATE FOR CALCULATING CAPITAL GAIN

Cost Inflation Index for FY 2017-18 

Sn.	Financial Year(FY)	Assessment Year(AY)	Cost Inflation Index
1	2001-02	2002-03	100