Income from Other Sources Calculator
Compute taxable income under Section 56 — FD interest, savings bank interest, dividends, family pension, gifts, and lottery winnings — for FY 2026-27 (AY 2027-28).
💰 Interest Income
📈 Dividend Income
👴 Family Pension
🎁 Gifts Received — s.56(2)(x)
🎰 Lottery / Online Games / Crossword / Puzzles
📊 Income from Other Sources — Summary
About Income from Other Sources
Income from Other Sources (IFOS) is the fifth and residual head of income under Section 56 of the Income Tax Act 1961 (Section 91 of the IT Act 2025). Any income that does not specifically fall under Salary, House Property, Business/Profession, or Capital Gains is taxed here. The most common items are bank interest, dividends, family pension, gifts, and winnings.
Most IFOS income is taxed at regular slab rates under both old and new regimes. However, lottery and game winnings are taxed at a flat 30% under Sections 115BB and 115BBJ regardless of the individual's slab rate or basic exemption — even ₹1 of lottery income is taxed at 30%.
| Income Type | Section (1961) | Section (2025) | Tax Rate | Deduction |
|---|---|---|---|---|
| FD / Post Office interest | s.56(2)(i) | s.91(2)(a) | Slab rates | None (80TTA/TTB is against savings a/c interest only) |
| Savings bank interest | s.56(2)(i) | s.91(2)(a) | Slab rates | 80TTA up to ₹10,000 (non-senior); 80TTB up to ₹50,000 (senior 60+). Old regime only. |
| Dividends | s.56(2)(i) | s.91(2)(a) | Slab rates | Interest expense on loan to invest, max 20% of gross dividend |
| Family pension | s.57(iia) | s.92(b) | Slab rates | 1/3 of pension or ₹15,000, whichever lower |
| Gifts from non-relatives | s.56(2)(x) | s.91(2)(f) | Slab rates | Exempt up to ₹50,000 aggregate; specific exemptions for marriage/inheritance |
| Lottery / horse race | s.115BB | s.115BB | Flat 30% | None |
| Online gaming | s.115BBJ | s.115BBJ | Flat 30% | None |
How to Use This Calculator
- FD / savings interest: Enter total interest received or accrued during FY 2026-27 from all banks, post offices, and other sources. If your FD matures next year but you follow mercantile accounting, include only the interest accrued this year.
- Dividends: Enter the total gross dividend received (before TDS). Then enter interest paid on any loan taken to invest in shares/MFs — only this expense is deductible against dividends, and only up to 20% of the gross dividend.
- Family pension: Enter the gross annual pension received. The tool automatically applies the Section 57(iia) deduction (lower of 1/3 or ₹15,000). Do not enter regular/commuted pension from your employer here — that goes under Salaries.
- Gifts: Add each gift received from a non-relative separately. Gifts from relatives are exempt; do not include them. Aggregate gifts from non-relatives are exempt up to ₹50,000 — the tool handles this automatically.
- Lottery / game winnings: Enter net winnings (prize money received). Tax on these is computed separately at the flat 30% + 4% cess rate, not at slab rates.
Frequently Asked Questions
My FD interest is taxed at source — do I still need to report it?
Yes. TDS deducted (Form 26AS will show it) is a credit, not a final tax. You must include the gross interest income in your ITR and pay tax at your slab rate. If your slab rate is lower than the TDS rate (10%), you will get a refund. If higher, you pay the difference as advance tax or self-assessment tax.
Is the 80TTA / 80TTB deduction shown here?
This tool computes the gross income under the IFOS head. The deductions under Sections 80TTA (up to ₹10,000 savings interest for non-seniors) and 80TTB (up to ₹50,000 for senior citizens aged 60+) are claimed in Chapter VI-A deductions — use our 80C + 80D Planner or the Advanced Tax Calculator to include these deductions in your final tax computation.
Is dividend income taxed in both old and new regime?
Yes. Dividends received from domestic companies and mutual funds are fully taxable at slab rates under both regimes since April 1, 2020 (after the DDT regime was abolished). The 20% cap on interest expense deduction applies only under the old regime — under the new regime, no deductions against dividend income are allowed.
What if I win ₹5,000 in a lottery — is the full amount taxed?
Under Section 115BB, every rupee of lottery income is taxed at 30% + cess — there is no basic exemption available for these winnings. TDS at 30% is deducted u/s 194B only if the winning from a single payer exceeds ₹10,000 in a year, but the tax liability exists even below that threshold and must be disclosed in your ITR.
My friend gifted me ₹80,000 cash — is it fully taxable?
A friend is not a "relative" under Section 56(2)(x). Cash gifts from non-relatives are exempt up to ₹50,000 in aggregate per year. Since your aggregate non-relative cash gifts exceed ₹50,000, the entire ₹80,000 becomes taxable (not just the excess ₹30,000) — this is a common misconception. Add this gift in the calculator to see the full taxable amount.
Is interest on EPF (early withdrawal) treated as Income from Other Sources?
EPF contributions made before 5 years: if you withdraw before completing 5 years of service, the employer's contribution and interest become taxable. The employee's contribution interest is taxable as IFOS. This is separate from the TDS deducted u/s 192A by EPFO. Consult a tax adviser for EPF taxation specifics.