ITR Filing Online: How To Report Other Income In Tax Returns?

While ITR filing online , apart from your professional income, income from other sources are also to be declared. While form 16 gives you the details regarding taxation at the profession front, you need to disclose the income earned through selling properties, capital assets or interest on investments. Most of these incomes are taxable and hence should be clearly mentioned while filing the returns. Let’s look at how to declare this income from other sources, one by one:

1. Declaring Capital Gains Capital gains are profits earned through the sale of capital assets such as property, gold, stocks or mutual funds . It is calculated as the difference between sale value and purchase price, but it may differ from different assets. These gains are to be declared under the CG section in the ITR forms.
2. Profits Incurred via Stocks and Funds From the year 2019 onwards, the LTCG of more than a lakh through the sale of equity will be taxable. Getting the summary of capital gains through mutual funds can be tedious due to different dates of investment associated with MFs. Various tools are available online to help you get the exact figure. A deduction can be claimed on the brokerage and securities transaction tax incurred while selling the asset.
3. Gains Through the Sale of Gold There is a section ‘sale of other assets’ where the capital gain through gold can be declared. The long term capital gains on an investment of gold are also subjected to indexation benefits. The sovereign gold bonds , if held till the maturity period of 8 years, become tax-free. The taxation is the same as for gold funds if the bonds are sold before reaching maturity.
4. Income Through Rent Any income through rent other than the owner-occupied house will be declared under the head ‘income from house property’. In case a house is vacant, you need to declare notional rent. For joint properties, the rent is taxable in proportion to the share of each owner.
5. Income from Other Sources Under this head, various income such as gifts, income through lotteries, gambling, dividends, etc. can be declared. Even if some of the sources may have tax-benefits, they are still to be declared legally.

Make sure to gather proper figures for every other source of income, before the declaration. Also, be sure of the headings under which different incomes have to be reported. A little careful attitude can help you to easily file your return with all the details.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.