commercecurrents

  1. Fees or Commission ·          Explanation 1 (Nature):  This refers to any remuneration received for performing a specific service or facilitating a transaction that does not arise from a regular "Employer-Employee" relationship. ·          Explanation 2 (Tax Treatment):  It is taxable under IFOS only if it is not earned as part of a regular business or profession (which would otherwise go under PGBP). 2. Annuity ·          Explanation 1 (Nature):  An annuity is a fixed sum of money paid to an individual at regular intervals (monthly/yearly) for life or a specified period, usually from an insurance policy or a contract. ·          Explanation 2 (Tax Treatment):  If the annuity is received from a past employer, it is taxed as "Salary." However, if it is received under a personal contract or a...

  The following income shall be chargeable to income tax under head "Income From Other Sources" : 1. Dividends Any dividend income received from shares (domestic or foreign) is taxable under this head in the hands of the shareholder. Note: Since April 2020, the Dividend Distribution Tax (DDT) was abolished, making dividends fully taxable for the recipient. 2. Winnings from Lotteries, Puzzles, etc. Any winnings from: Lotteries, crossword puzzles, races (including horse races). Card games, gambling, or betting of any form. Tax Rate:  These are taxed at a flat rate of  30%  (plus cess) under Section 115BB. No deductions or basic exemption limits apply to this income. 3. Gifts (The Most Common Sub-section) Under Section 56(2)(x), if a person receives a gift, it is taxable if the value exceeds  ₹50,000  in a year. This includes: Sum of Money:  If the total cash/cheque received exceeds ₹50,000. Immovable Property (Land/Building):  If received without co...