Tax Laws and Practice · Income from Other Sources

Income from Other Sources: Scope and Chargeability

Updated 11 October 2026 · Fact-checked

Income from other sources is the residuary head of income. Under section 92 of the Income-tax Act, 2025, any income that is not exempt and does not fall under the heads in section 13(a) to (d) is taxed here. To solve a question, test the other heads first, then check the specific list in section 92(2).

Understand Income from Other Sources: Scope and Chargeability

The Act groups income into heads. Salary, house property, business or profession, and capital gains are the first four. Income from other sources is the fifth, and it works as a safety net.

Under section 92(1), income of every kind is chargeable here if two conditions are met. It must not be excluded from total income under the Act. It must also not be chargeable under any of the heads in section 13(a) to (d). So you never ask "is this other-source income?" first. You ask "does it fit any other head?" first.

Section 92(2) then lists incomes that are chargeable here "in particular", without limiting the general rule in section 92(1). The list includes: any dividend; winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort, and gambling or betting; interest on securities; income from letting machinery, plant or furniture; interest on compensation or enhanced compensation; compensation on termination of employment or modification of its terms; sums received without consideration or for inadequate consideration; and certain life insurance receipts.

Some items in the list apply only if the income is not chargeable under business or profession. Examples are interest on securities, income from letting plant, machinery or furniture, employees' contributions to welfare funds, and keyman insurance receipts. So the same receipt can be business income for one person and other-source income for another.

Deductions are limited. Section 94 bars personal expenses and certain interest or salary payable outside India without tax paid or deducted. For winnings from lotteries, games and betting, no deduction for any expenditure is allowed. Deductions and gifts are covered in separate topics. Here you only need scope and chargeability.

Key rules to remember

General charge (residuary rule): Chargeable under other sources if: income is not exempt AND not chargeable under section 13(a) to (d); Section 92(1). Always test the other heads first.
Specific incomes under section 92(2): Dividend; winnings from lotteries, crossword puzzles, races, card games, other games, gambling or betting; interest on securities; compensation on termination of employment; interest on compensation under section 278(1); and others in the list; Chargeable here without limiting section 92(1).
Business-income conditional items: Interest on securities; letting of machinery, plant or furniture; keyman insurance; employees' fund contributions: other sources only if not chargeable under business or profession; Where the Act gives this condition, business treatment takes priority.
Winnings and deductions: Section 94(4): no deduction for any expenditure or allowance related to winnings from lotteries, games, gambling or betting; Section 94(5): does not apply to a horse owner's income from owning and maintaining horses for races.
Amounts not deductible: Section 94(1): personal expenses; interest payable outside India without tax paid or deducted; salary payable outside India without tax paid or deducted; Applies irrespective of section 93.
Gift-type receipts (section 92(2)(m)): Money without consideration: whole sum if total exceeds ₹50,000 in the tax year; Detailed rules for property and exceptions belong to the gifts topic.

How to solve Income from Other Sources: Scope and Chargeability questions

Use this method for any question asking whether a receipt is taxable under this head or how to treat it.

1Identify the receipt and the person receiving it. Note whether it is earned in a business or as an investment.
2Check if the income is exempt under the Act. If yes, it is excluded from total income and the head does not apply.
3Test the other heads in section 13(a) to (d): salary, house property, business or profession, capital gains. If it fits one, tax it there.
4If it fits none, apply section 92(1) and tax it under other sources.
5Match it with the specific list in section 92(2). Check any condition such as "if not chargeable under business or profession".
6Apply section 94: bar on personal expenses, and no deduction against winnings from lotteries and games.
7Write the conclusion: name the head, cite section 92 (and 94 where relevant), and state the amount taxable.

Quickest way: Three-question screen

When to use it: When you have little time and need a short, safe answer on the head of income.

Is it exempt? If yes, stop.
Does it belong to salary, house property, business or capital gains? If yes, tax it there.
Otherwise, write: chargeable under income from other sources under section 92, then name the clause in section 92(2) if one applies.

Common mistakes in Income from Other Sources: Scope and Chargeability

Treating other sources as the first head to test.
Students see an investment-type receipt such as interest and jump to the conclusion.
Fix: Remember it is residuary. Rule out the other heads first, then apply section 92.
Treating section 92(2) as a closed list.
The word "particular" is overlooked.
Fix: Section 92(2) is without prejudice to section 92(1). Other income not in the list can still be taxed here.
Ignoring the condition "if not chargeable under business or profession".
Students memorise the list without its conditions.
Fix: For interest on securities, letting of plant, keyman insurance and similar items, check first whether the income is business income.
Deducting expenses from lottery or game winnings.
Students apply the general logic of net income.
Fix: Section 94(4) allows no deduction for expenditure related to such winnings. Tax the full amount.
Allowing personal expenses as a deduction.
Students assume any cost of earning income is deductible.
Fix: Section 94(1)(a) bars personal expenses of the assessee.
Applying the horse-race rule to every race-related income.
Section 94(5) is misread.
Fix: Winnings from races are taxed here with no deduction. Only a horse owner's income from owning and maintaining horses for races is outside section 94(4).

Worked examples

Example 1

Ramesh, an individual, won ₹5,00,000 in a television game show and spent ₹40,000 on travel to take part. Under which head is the winning taxable and how much is chargeable?

Show the solution

Game shows are covered: section 92(5)(b) says card game and other game of any sort includes a game show where people compete to win prizes.
So the winning is chargeable under income from other sources under section 92(2)(b).
Section 94(4) allows no deduction for any expenditure related to such winnings.
The ₹40,000 travel cost is therefore not deductible.
Chargeable amount = ₹5,00,000.

Answer: The ₹5,00,000 is taxable under income from other sources under section 92(2)(b). No deduction is allowed for the ₹40,000 travel cost under section 94(4).

Example 2

Meera received ₹80,000 as compensation when her employer modified the terms of her employment. Which head applies, and what is the legal basis?

Show the solution

The receipt is compensation in connection with modification of the terms and conditions of employment.
Section 92(2)(j) lists any compensation or other payment received in connection with termination of employment or modification of its terms as chargeable under other sources.
This clause has no condition that sends it elsewhere, so the specific provision applies.
Conclusion: the ₹80,000 is taxable in full as a receipt under this head, subject to any exclusion under the Act.

Answer: The ₹80,000 is chargeable under income from other sources under section 92(2)(j), subject to any specific exemption under the Act.

Exam tips

Begin every answer with the residuary logic: not exempt, not under section 13(a) to (d), therefore section 92.
Cite section 92(2) with the clause letter where you can. Cite section 94(4) whenever winnings are in the question.
Look for the condition "if not chargeable under business or profession". Question facts often hint that the person is in business.
In case-based questions, use three parts: provision, application to the facts, and conclusion.
Use the actual definitions: game shows are within "card game and other game of any sort" under section 92(5)(b).

Practice questions from Income from Other Sources

Income from Other Sources: Scope and Chargeability in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Income from Other Sources: Scope and Chargeability: frequently asked questions

Why is income from other sources called the residuary head?

Section 92(1) taxes income here only if it is not exempt and is not chargeable under any head in section 13(a) to (d). It catches whatever the other heads miss.

Are winnings from lotteries and game shows taxable?

Yes. Section 92(2)(b) makes winnings from lotteries, races, card games and other games of any sort chargeable here. Section 92(5)(b) includes game shows in this. No expenditure deduction is allowed under section 94(4).

Is dividend always taxed under other sources?

Section 92(2)(a) lists any dividend as chargeable under this head. Questions on dividend are therefore answered with this clause, and section 94 limits deductions.

Can I claim any deduction under this head?

Section 94(2) applies sections 29, 35(b)(i) and 36 as they apply to business income. Section 94(1) bars personal expenses and certain payments outside India, and section 94(4) bars all deductions against winnings.