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CA Intermediate · Taxation · Income from Other Sources

Mr. Arjun Nair, a resident individual, received the following during tax year 2026-27: (i) interest of Rs 18,000 on a savings bank account with a bank; (ii) interest of Rs 25,000 on a fixed deposit with a bank; (iii) winnings of Rs 40,000 from a lottery. Ignoring any deduction under Chapter VIII-type provisions, what is the income chargeable under the head Income from Other Sources?

The income under Income from Other Sources is Rs 83,000. Savings bank interest, fixed deposit interest and lottery winnings are all chargeable under this head, so they are added together: 18,000 plus 25,000 plus 40,000. Excluding the lottery would understate the income.

  1. ARs 83,000Correct
  2. BRs 65,000
  3. CRs 40,000
  4. DRs 25,000

Explanation

Savings interest Rs 18,000, FD interest Rs 25,000 and lottery winnings Rs 40,000 are all taxable under Income from Other Sources. Total = 18,000 + 25,000 + 40,000 = Rs 83,000. Rs 65,000 wrongly excludes the lottery, which is taxable at special rate but still forms part of the head; the deduction is ignored per the question.

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