There are a few more sources of income which one must disclose.
Some of them are:
1. Interest earned from savings bank account: This interest is tax free up to Rs. 10,000. Any interest earned above that is taxable and should be declared.
2. Interest earned from fixed deposits: This is taxable as per one's income tax slab. Most of the time banks deduct 10 per cent TDS when the interest accrued is more than Rs. 10,000 (unless one submits Form 15 G/H). However, the actual tax liability will be more or less, depending upon the tax bracket one falls under after all incomes and deductions are claimed.
3. Interest earned from recurring deposits: This interest is taxable as per one's income tax slab. Banks do not cut any TDS on interest earned on recurring deposits and, hence, it becomes even more important to declare this source of income.
4. Cash gifts: Cash gifts of over Rs. 50,000 should be declared as they are taxable (unless for specific occasions like marriage)
5. Capital gains/losses: Any capital gains/losses made from trading equities, selling mutual funds, gold, etc. should be declared even though they may be non-taxable (e.g. for equities, long-term capital tax is nil). Similarly, any losses should be declared as these help in offsetting gains for subsequent years.
6. Exempt income: Exempt income (e.g. interest earned on PPF/EPF accounts) should be declared for auditing purposes only. This is a tax-free income.
7. Dividend income: Dividend income is tax free in the hands of the investor. However, this should be declared while filing income tax returns.
Some of them are:
1. Interest earned from savings bank account: This interest is tax free up to Rs. 10,000. Any interest earned above that is taxable and should be declared.
2. Interest earned from fixed deposits: This is taxable as per one's income tax slab. Most of the time banks deduct 10 per cent TDS when the interest accrued is more than Rs. 10,000 (unless one submits Form 15 G/H). However, the actual tax liability will be more or less, depending upon the tax bracket one falls under after all incomes and deductions are claimed.
3. Interest earned from recurring deposits: This interest is taxable as per one's income tax slab. Banks do not cut any TDS on interest earned on recurring deposits and, hence, it becomes even more important to declare this source of income.
4. Cash gifts: Cash gifts of over Rs. 50,000 should be declared as they are taxable (unless for specific occasions like marriage)
5. Capital gains/losses: Any capital gains/losses made from trading equities, selling mutual funds, gold, etc. should be declared even though they may be non-taxable (e.g. for equities, long-term capital tax is nil). Similarly, any losses should be declared as these help in offsetting gains for subsequent years.
6. Exempt income: Exempt income (e.g. interest earned on PPF/EPF accounts) should be declared for auditing purposes only. This is a tax-free income.
7. Dividend income: Dividend income is tax free in the hands of the investor. However, this should be declared while filing income tax returns.
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