New IT Act 2025 — Knowledge Bank

Income from other sources

Section 92 — Income from other sources

Old Act equivalent: Section 56 of IT Act 1961 Sub-part: F.—Income from other sources

Statutory Text

(1) Income of every kind which is not to be excluded from the total income under this Act, shall be chargeable to income-tax under the head “Income from other sources”, if it is not chargeable to income-tax under any of the heads specified in section 13(a) to (d).

(2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the following incomes shall be chargeable to income-tax under the head “Income from other sources”:—

(a) any dividend;

(b) any winning from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature;

(c) any sum received by the assessee from employees as contributions to any provident fund, superannuation fund, any fund set up under the Employees’ State Insurance Act, 1948 (34 of 1948), or any other fund for the welfare of such employees, if the income is not chargeable to income-tax under the head “Profits and gains of business or profession”;

(d) any sum received under a Keyman insurance policy, as defined in Schedule II (Note 1) including the bonus allocated on such policy, if such income is not chargeable to income-tax under the head “Profits and gains of business or profession” or under the head “Salaries”;

(e) any income by way of interest on securities, if the income is not chargeable to income-tax under the head “Profits and gains of business or profession”;

(f) any income from machinery, plant or furniture belonging to the assessee and let on hire, if the income is not chargeable to income-tax under the head “Profits and gains of business or profession”;

(g) any income from letting on hire of machinery, plant or furniture, belonging to the assessee and also buildings, where the letting of the buildings is inseparable from the letting of such machinery, plant or furniture, if the income is not chargeable to income-tax under the head “Profits and gains of business or profession”;

(h) any sum of money received as an advance or otherwise during negotiations for the transfer of a capital asset, if — (i) such sum is forfeited; and (ii) the negotiations do not result in transfer of such capital asset;

(i) any income by way of interest received on compensation or on enhanced compensation referred to in section 278(1);

(j) any compensation or other payment, due to or received by any person, by whatever name called, in connection with the termination of his employment, or the modification of its terms and conditions;

(k) any specified sum received by a unit holder from a business trust during the tax year with respect to a unit held by him at any time during such tax year, the computation of which shall be — specified sum = A – B – C (which shall be deemed to be zero, if the sum of B and C is greater than A), where — A = aggregate of the sum distributed by the business trust with respect to such unit, during the tax year or during any earlier tax year or years, to such unit holder, who holds such unit on the date of distribution of sum or to any other unit holder who held such unit at any time prior to the date of such distribution, which is — (a) not in the nature of income referred to in Schedule V (Table: Sl. No. 3 or 4); and (b) not chargeable to tax under section 223(2); B = amount at which such unit was issued by the business trust; and C = amount charged to tax under this clause in any earlier tax year;

(l) where any sum, including bonus allocated, is received, during a tax year, under a life insurance policy, other than — (a) sums received under a unit linked insurance policy; or (b) income referred to in clause (d), and such sum is not to be excluded from the total income of that tax year under Schedule II (Table: Sl. No. 2), the sum exceeding the aggregate of the premium paid, during the term of such life insurance policy, and not claimed as a deduction under this Act, computed in such manner, as may be prescribed;

(m) where any person receives in any tax year, from any person or persons —

(i) any sum of money without consideration, the total of which exceeds Rs. 50,000, the whole of such sum;

(ii) any immovable property — (A) without consideration, the stamp duty value of which exceeds Rs. 50,000, the stamp duty value of such property; (B) for a consideration, the stamp duty value of such property that exceeds such consideration, if this excess amount is more than the higher of: (I) Rs. 50,000; or (II) 10% of the consideration;

(iii) any property, other than immovable property, — (A) without consideration, the aggregate fair market value of which exceeds Rs. 50,000, the whole of the aggregate fair market value of such property; (B) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding Rs. 50,000, the aggregate fair market value of such property as exceeds such consideration.

(3) The provisions of sub-section (2)(m) shall not apply to any sum of money or any property received —

(a) from any relative; or

(b) on the occasion of marriage of the individual; or

(c) under a will or by way of inheritance; or

(d) in contemplation of death of the payer or donor; or

(e) from any local authority as defined in Schedule III (Note 6); or

(f) from or by any registered non-profit organisation as defined in section 355(g), except when received by any person referred to in section 355(h); or

(g) by way of a transaction not regarded as transfer under section 70(1)(a), (c), (d), (e), (f), (g), (i), (j), (k), (l), (n), (o), (t), (u), (v) or (w); or

(h) from an individual by a trust created or established solely for the benefit of relative of the individual; or

(i) from such class of persons and subject to such conditions, as may be prescribed.

(4) For the purposes of sub-section (2)(m)(ii), —

(a) if the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of agreement shall apply, provided the consideration, in whole or in part, has been paid in specified banking or online mode as defined in section 66(32) on or before the date of agreement for transfer of such immovable property;

(b) if the stamp duty value of immovable property is disputed by the assessee on the grounds mentioned in section 78(2), the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of sections 78(2) and 288(1) (Table: Sl. No. 8) shall, as far as may be, apply to the stamp duty value of such property as they apply for valuation of capital asset under those sections.

(5) For the purposes of this section, —

(a) “assessable” shall have the meaning assigned to it in section 2(105);

(b) “card game and other game of any sort” includes any game show, an entertainment programme on television or electronic mode, where people compete to win prizes or any similar game;

(c) “fair market value” of a property, other than an immovable property, means the value determined by such method as may be prescribed;

(d) “jewellery” shall have the meaning assigned to it in section 2(22);

(e) “lottery” includes winnings from prizes awarded by draw of lots, by chance, or in any other manner under any scheme or arrangement by whatever name called;

(f) “property” means the following capital asset of the assessee: (i) immovable property being land or building or both; (ii) shares and securities; (iii) jewellery; (iv) archaeological collections; (v) drawings; (vi) paintings; (vii) sculptures; (viii) any work of art; (ix) bullion; or (x) virtual digital asset;

(g) “relative” means — (i) in case of an individual — (A) spouse; (B) brother or sister; (C) brother or sister of the spouse; (D) brother or sister of either of the parents; (E) any lineal ascendant (maternal as well as paternal) or descendant; (F) any lineal ascendant (maternal as well as paternal) or descendant of the spouse; (G) spouse of the person referred to in items (B) to (F); and (ii) for a Hindu undivided family, any member thereof;

(h) “unit linked insurance policy” shall have the meaning assigned to it in Schedule II (Note 1).

Sub-sections

Sub-section (1)

Residuary charging provision — any income not taxable under heads (a) to (d) of section 13 (Salaries, House Property, PGBP, Capital Gains) falls under this head.

Sub-section (2)

Specific inclusions: dividends (a), lottery/gambling (b), employee welfare fund contributions (c), Keyman insurance (d), interest on securities (e), hire income from machinery/plant/furniture (f-g), forfeited advance for capital asset (h), compensation interest (i), employment termination compensation (j), business trust distributions (k), life insurance proceeds (l), gifts/deemed income (m).

Sub-section (3)

Exclusions from gift taxation under clause (m): receipts from relatives, on marriage, under will/inheritance, in contemplation of death, from local authority, from non-profit organisations, exempt transfers under section 70, trusts for relatives, and prescribed classes.

Sub-section (4)

Stamp duty value rules for immovable property gifts: date of agreement applies if consideration paid in banking/online mode; Valuation Officer reference if disputed.

Sub-section (5)

Definitions: assessable, card game, fair market value, jewellery, lottery, property (10 categories including VDA), relative (exhaustive list), ULIP.

Provisos

None.

Explanations

None.

Tables

None.

Key Structure

  • Applies to: All assessees — this is the residuary head catching all income not taxable under heads (a) to (d)
  • Specific inclusions (sub-section 2):
    • Dividends (clause (a))
    • Lottery, gambling, card games, game shows (clause (b))
    • Employee fund contributions not taxed under PGBP (clause (c))
    • Keyman insurance (clause (d))
    • Interest on securities (clause (e))
    • Hire income — machinery/plant/furniture/buildings (clauses (f), (g))
    • Forfeited advance for capital asset transfer (clause (h))
    • Interest on compensation/enhanced compensation (clause (i))
    • Employment termination compensation (clause (j))
    • Business trust unit holder distributions (clause (k) — formula: A – B – C)
    • Life insurance proceeds exceeding premiums paid (clause (l))
    • Gifts/deemed income (clause (m)): Rs. 50,000 threshold for money, immovable property, and movable property
  • Gift taxation thresholds (clause (m)):
    • Money: total exceeds Rs. 50,000 → entire amount taxable
    • Immovable property without consideration: stamp duty value exceeds Rs. 50,000 → full SDV taxable
    • Immovable property for consideration: excess of SDV over consideration taxable if excess > higher of (Rs. 50,000, 10% of consideration)
    • Movable property: FMV exceeds Rs. 50,000 → full FMV or excess over consideration taxable
  • Gift exclusions (sub-section 3): Relative, marriage, will/inheritance, death contemplation, local authority, non-profit organisation, exempt transfers, trust for relatives
  • Property definition (sub-section 5(f)): 10 categories including virtual digital asset (VDA)
  • Relative definition (sub-section 5(g)): Spouse, siblings (own and spouse’s), parents’ siblings, lineal ascendants/descendants (both sides), their spouses; for HUF — any member

Cross-References

  • Section 13 (not yet ingested) — Heads of income (a) to (d) — this section is the residuary for everything not under those heads
  • s093-deductions — Section 93: deductions from other sources income
  • s094-amounts-not-deductible — Section 94: amounts not deductible
  • s095-profits-chargeable — Section 95: deemed profits (section 38 applies)
  • s223-business-trust-unit-holders — Section 223(2): business trust income — referenced in clause (k)
  • s070-exempt-transfers — Section 70(1): exempt transfers — referenced in sub-section (3)(g) for gift exclusion
  • s078-stamp-duty — Section 78(2): stamp duty value dispute — referenced in sub-section (4)(b)
  • Section 278(1) (not yet ingested) — Compensation interest — referenced in clause (i)
  • Section 124 (NPS) and section 355 (non-profit) — referenced in exclusions
  • Schedule II (Table: Sl. Nos. 2), Schedule V (Table: Sl. Nos. 3, 4), Schedule VII (Table: Sl. Nos. 20, 21) — referenced for exclusions

Amendment Notes

None noted from the extracted pages (amendments are in sections 93 and 94).

Practical Notes

  • This is the most voluminous section in the “Other Sources” head — it consolidates old sections 56(1), 56(2)(i) to (x), and 56(2)(viia)/(viib)/(vii) from the 1961 Act.
  • The gift taxation provisions (clause (m)) are the successor to old section 56(2)(x) — the Rs. 50,000 thresholds and the 10% safe harbour for immovable property remain unchanged.
  • The “relative” definition is exhaustive — cousins, in-laws’ siblings, and other extended family are NOT relatives for this purpose.
  • Virtual digital asset (VDA) is now explicitly listed as “property” in sub-section (5)(f)(x) — gifts of crypto assets are taxable.
  • Business trust distribution formula (clause (k)) is complex — the taxable amount is the cumulative distribution minus cost of unit minus amounts already taxed.
  • Life insurance proceeds (clause (l)) are taxable only if not exempt under Schedule II (Table: Sl. No. 2) — the taxable amount is proceeds minus aggregate premiums paid.
  • Forfeited advance (clause (h)) is taxable here, not under capital gains — the negotiations must not result in actual transfer.

Graph View

Backlinks