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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources

Under the Income-tax Act, 1961 (as applicable before the new Income-tax Act, 2025 takes effect), which of the following is chargeable to tax under the head 'Income from Other Sources' in the hands of an individual?

Dividend received from an Indian company is taxed under Income from Other Sources at the investor's slab rate. Salary, house rent and business profits each have their own separate heads of income, so they are not taxed here.

  1. ASalary received from an employer
  2. BDividend received from an Indian company on its sharesCorrect
  3. CRent from a house property let out for residence
  4. DProfit from a business of trading in shares

Explanation

Dividend income is taxable under Income from Other Sources at slab rates. Salary falls under Salaries, rent from a house under House Property, and business profit under Profits and Gains of Business or Profession.

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