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

Under the Income-tax Act, 1961, which of the following receipts in the hands of a resident individual is taxable under the head 'Income from Other Sources' at the applicable slab rates?

Savings bank interest is taxed under Income from Other Sources at slab rates, because it fits no other head. Salary is taxed as salary, agricultural income is exempt, and regular share trading profit is business income, so those options are incorrect.

  1. AInterest received on a savings bank account with a scheduled bankCorrect
  2. BAgricultural income from land in India
  3. CSalary received from an employer
  4. DProfits from a business of trading in shares carried on regularly

Explanation

Interest on a savings bank account is not salary, business income, or house property income, so it falls under Income from Other Sources (a deduction under Section 80TTA/80TTB may apply subject to conditions). Agricultural income is exempt, salary has its own head, and regular trading profit is business income.

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