Tax topic · income

    Income from Other Sources — Interest, Dividend, Gifts

    Interest on savings, FDs, bonds and P2P; dividend income (fully taxable at slab from FY 2020-21); gifts above ₹50k from non-relatives; family pension; and lottery/gaming winnings (30% flat) are all reported here.

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    Key takeaways
    • Section 194: 10% TDS on dividend > ₹5,000
    • Section 80TTA: ₹10k savings interest deduction
    • Section 80TTB: ₹50k FD/savings interest for senior citizens
    • Section 56(2)(x): gifts above ₹50k from non-relatives taxable
    • Section 115BB: lottery/game winnings taxed at 30% flat (no deductions)

    Definition

    Income from Other Sources

    The residual head under Sections 56–59 covering interest, dividend, gifts, family pension, lottery and any income not falling under the other four heads.

    What is Income from Other Sources?

    Interest on savings, FDs, bonds and P2P; dividend income (fully taxable at slab from FY 2020-21); gifts above ₹50k from non-relatives; family pension; and lottery/gaming winnings (30% flat) are all reported here.

    Key rules to remember

    • Section 194: 10% TDS on dividend > ₹5,000
    • Section 80TTA: ₹10k savings interest deduction
    • Section 80TTB: ₹50k FD/savings interest for senior citizens
    • Section 56(2)(x): gifts above ₹50k from non-relatives taxable
    • Section 115BB: lottery/game winnings taxed at 30% flat (no deductions)

    Worked example

    A retiree with ₹80k SB interest + ₹1.4L FD interest + ₹40k dividend: total OS income ₹2.6L. 80TTB deduction ₹50k. Net ₹2.1L added to slab income.

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    FAQs

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    Last Updated
    15 September 2026

    Content refreshed against the latest CBIC / CBDT / MCA notifications and portal changes.

    Reviewed by Chartered Accountant
    CA Ravi Sharma

    Chartered Accountant · ICAI Member · 12+ years in Indian tax & compliance

    Update History
    1. 15 September 2026
      Reviewed rates, forms and portal workflow for Income from Other Sources. Verified against latest CBIC/CBDT notifications.
    2. 10 January 2026
      Refreshed FAQ set, added new penalty examples and jurisdiction notes.
    3. 05 October 2025
      Structural rewrite for EEAT — added expert commentary, playbooks and process timeline.