Income from other sources: interest, dividends, gifts and winnings
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Updated 03 Oct 2026
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AI summary
Which incomes fall under 'other sources', how each is taxed, the TDS on them, and the gift rules.
8 sections
Key facts
- "Income from other sources" is the head for income that does not fall under salary, house property, business or capital gains.
- It is taxed at your slab rate, except winnings from lotteries, games and gambling, which are taxed at a flat 30% (plus surcharge and cess) with no deduction.
- Interest on fixed deposits is taxable every year on accrual, even if the FD has not matured.
Common incomes under this head
| Income | Tax treatment | TDS (section 393) |
|---|---|---|
| Savings bank interest | Slab rate; deduction up to ₹10,000 (₹50,000 for seniors on all deposit interest) in the old regime only | No TDS |
| FD / RD interest from a bank | Slab rate | 10% above ₹50,000 a year (₹1 lakh for seniors) |
| Interest from others (company deposits, loans) | Slab rate | 10% above ₹10,000 |
| Dividend | Slab rate; only interest paid to earn it is deductible, up to 20% of the dividend | 10% above ₹10,000 a year |
| Family pension | Slab rate less one-third or ₹25,000 (new regime) / ₹15,000 (old regime), whichever is lower | — |
| Interest on income tax refund | Slab rate, in the year received | — |
| Lottery, game show, online game winnings | Flat 30% | 30% (above ₹10,000 per transaction for lottery and game shows) |
Gifts
- Gifts (money or property) from non-relatives are taxable if the total for the year exceeds ₹50,000. Then the whole amount is taxable, not just the excess.
- Fully exempt: gifts from relatives (spouse, siblings, parents, grandparents, children and their spouses, and others defined), gifts on your marriage, inheritance and gifts under a will.
- Property bought below stamp duty value can also be taxed here if the difference is above the higher of ₹50,000 and 10% of the price.
Common questions
My bank deducted TDS but my income is below the taxable limit. What can I do?
Submit Form 121 (old 15G/15H) to the bank at the start of the year, and claim a refund of TDS already deducted in your ITR.
Is interest on a tax-free bond taxable?
No, if the bond is notified as tax-free. Report it as exempt income in the ITR.
Can I claim expenses against interest income?
Only expenses spent wholly to earn that income, such as a commission paid to collect interest. Personal interest on a loan used for a deposit is generally not allowed.
Sources
Law as of October 2026. Verify against the latest notifications before relying on it for filings.
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