Answer :
Let's break down each of the questions one by one:
- Income from Other Sources:
Income from Other Sources is a category of income under tax laws where certain types of income that do not belong to salaries, house property, profits and gains of business or profession, or capital gains are classified. It generally includes income that might be incidental or secondary to the main sources.
Examples include:
- Interest income from savings accounts.
- Dividend income from shares.
- Income from lottery winnings.
- Compute the Gross Total Income:
To compute the Gross Total Income, you combine different types of income and subtract the appropriate losses:
Given:
- Speculation Income: [tex]\text{₹} 50,000[/tex]
- Non-speculation Business Loss: [tex]\text{₹} 60,000[/tex]
- Short-term Capital Gain: [tex]\text{₹} 50,000[/tex]
- Long-term Capital Gain: [tex]\text{₹} 50,000[/tex]
The calculation steps:
- Combine all income sources: Speculation Income [tex]+[/tex] Short-term Capital Gain [tex]+[/tex] Long-term Capital Gain = [tex]\text{₹} 50,000 + \text{₹} 50,000 + \text{₹} 50,000 = \text{₹} 150,000[/tex]
- Subtract the non-speculation business loss from the total income: [tex]\text{₹} 150,000 - \text{₹} 60,000 = \text{₹} 90,000[/tex]
Therefore, the Gross Total Income is [tex]\text{₹} 90,000[/tex].
- Tax-Free Securities:
Tax-free securities refer to certain types of financial instruments that generate income not subject to tax. These are often issued by the government to encourage investment, and typically their interest income is exempt from taxation.
Examples:
- Interest from certain government bonds.
- Municipal bonds with tax-exempt status.
These questions give an overview of how different income sources can be classified and managed for taxation purposes, as well as highlight some types of investment options with tax advantages.
