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

Under the Income-tax Act as applicable to individuals, which of the following is a receipt that is generally taxed under the head 'Income from Other Sources' when not taxable under any other head?

Dividend income from an Indian company is taxed under Income from Other Sources. Salary falls under Salaries, shop profit under business income, and rent from a let-out house under house property, so only dividend belongs to the residual head.

  1. ASalary received from an employer
  2. BDividend income received from an Indian companyCorrect
  3. CProfit from running a grocery shop
  4. DRent from house property let out for the full year

Explanation

Dividend income is specifically chargeable under Income from Other Sources. Salary is taxed under Salaries, shop profit under Profits and Gains of Business or Profession, and rent from a house under Income from House Property, so these other options belong to different heads.

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