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

Under the Income-tax Act as applied to an individual resident, which of the following is taxed under the head 'Income from Other Sources' when received by a salaried person who has no business?

Interest on a savings bank account is taxed under Income from Other Sources for an individual without business activity. Salary falls under Salaries, rent under Income from House Property, and share sale profits under Capital Gains, so those options belong to other heads.

  1. AInterest on a savings bank account with a bankCorrect
  2. BBasic salary received from an employer
  3. CRent from a house property owned by the person
  4. DGain on sale of listed shares held for 5 years

Explanation

Interest on savings and fixed deposits is taxed under Income from Other Sources for a non-business individual. Salary is under the head Salaries, rent under House Property, and sale of shares under Capital Gains.

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