Understanding Income from Other Sources (IFOS)

Types of IFOS Income: Bank Interest: From savings accounts, fixed deposits, and recurring deposits. Investment Interest: From bonds, debentures, and other investments. Dividend Income: From shares or mutual funds. Family Pension: Received by family members after the pensioner's death.

Gifts: Monetary or valuable assets received under certain conditions. Royalties: From intellectual property like patents, copyrights, or trademarks. Important Documents for IFOS: PAN: Alphanumeric ID for linking transactions and filing tax returns. Aadhaar: 12-digit unique ID mandatory for filing ITR.

Form 26AS: TDS Details: Information on tax deducted from income. TCS Details: Information on tax collected from payments. Advance and Self-Assessment Tax: Payments made by taxpayers. Refunds: Details of any refunds received during the year. High-Value Transactions: Significant investments in shares and mutual funds.

Investment Proofs: Necessary for Deductions: Donation receipts, fixed deposit statements, etc. Helps reduce taxable income: Under Chapter VI-A deductions. Importance of Bank Statements: Track IFOS Transactions: Determine income from interest, dividends, gifts, etc. Accurate Reporting: Essential for preparing your ITR and claiming deductions.