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ITR Documents: Income from other sources

by | May 25, 2024 | Income Tax | 0 comments

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Important Keyword: Form 26AS, IFOS, Income Source, Income Tax Filing.

ITR Documents: Income from Other Sources (IFOS)

Income from Other Sources (IFOS) includes any income that is not taxed under the following heads:

  1. Salary Income
  2. Business and Profession Income
  3. Capital Gains Income
  4. House Property Income

Types of Income Included in IFOS

  • Bank Interest: Interest earned from savings accounts, fixed deposits, and recurring deposits.
  • Investment Interest: Interest from bonds, debentures, and other investments.
  • Dividend Income: Dividends received from shares or mutual funds.
  • Family Pension: Pension received by family members after the death of the pensioner.
  • Gifts: Monetary gifts or valuable assets received, subject to certain conditions.
  • Royalties: Income earned from intellectual property like patents, copyrights, or trademarks.

These various sources of income fall under IFOS and are subject to specific tax rules and regulations.

Document Checklist for Income from Other Sources (IFOS)

1. PAN (Permanent Account Number)
  • Issued by the Income Tax Department (ITD), PAN is an alphanumeric ID essential for taxpayers.
  • PAN links all transactions of a person to their income and is crucial for filing Income Tax Returns (ITR).
2. Aadhaar
  • Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI).
  • It is mandatory for resident individuals to provide their Aadhaar details when filing ITR.
3. Form 26AS
  • Form 26AS is a consolidated Tax Credit Statement containing the following details:
    • Details of TDS (Tax Deducted at Source): Information on TDS from the taxpayer’s income.
    • Details of TCS (Tax Collected at Source): Information on TCS from the taxpayer’s payments.
    • Advance Tax and Self-Assessment Tax: Payments made by taxpayers.
    • Refunds: Details of any refunds received during the year.
    • High-Value Transactions: Information on significant transactions, such as investments in shares and mutual funds.

Proofs for Investment Deductions

When filing your Income Tax Return (ITR), you can claim deductions for certain investments and expenses. To do this, you need to provide proofs of these investments, such as donation receipts, fixed deposit statements, and other relevant documents. These investment proofs are crucial as they help reduce your overall taxable income under Chapter VI-A deductions.

Importance of Bank Statements

A bank statement that includes Income from Other Sources (IFOS) transactions is essential for preparing your ITR. By examining your bank statements, you can determine the total income earned from various sources like interest, dividends, gifts, and more. This information is vital for accurately reporting your income and claiming the appropriate deductions.

Read More: Form 26QD: TDS on Contractual and Professional Payments

Web Stories: Form 26QD: TDS on Contractual and Professional Payments

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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