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  Family Pension –Tax Treatment                                             Rs. Family pension Received XXX Less: Deduction 1.Rs.15,000 (or) 2.1/3 of pension Whichever is less     XXX Taxabl e Pension XXX   Problem : From the following calculate Income from other sources.                            Rs. a)Dividend from an Indian Company 10,000 b)University Remuneration 8,000 c)Royalty for writing books(He Claims to have spent Rs.20,000 for writing the book) 80,000 d)Dividend from foreign company 12,000 e) Interim dividend 6,000 f)Family Pe...

 Rules for calculating Income from Other Sources S.No Types Tax treatment 1 Dividend Fully Taxable 2. Casual Income l.Lotteries a) Upto Rs.10,000 b) Above Rs.10,000     No TDS 30 % TDS   2. Horse Race Winnings a) Upto Rs.10,000 b) Above Rs.10,000     No TDS 30 % TDS   3) Winning from others Races, Gambling or Betting No TDS 3 Interest on Bank Deposits Post Office Deposits a)Upto Rs.10,0000     No TDS 4. Interest on Post Office Deposits Upto Rs.3,500 exempt 5. Income from sub letting of P/M,F/F Fully Taxable 6. Interest on Compensation or on Enhanced Compensation 50%  is taxable 7. ...