Shah furnishes the information of his income for previous year 2022-23. Compute the Come under the head "income from other sources"

Question

1. Dividend income from equity shares

Rs. 6007-

Rs. 3200-

2. Dividend on Preference Shares

Rs.17,000/-

3. Income from letting building and machinery

Rs. 2500/-

4. Interest on Bank Deposits

Rs 1200/-

5. Directors sitting fee

Rs. 600/-

6. Ground rent received

Rs.10,000/-

7. Income from undisclosed sources

Rs.10,000/-

8. Winning from lotteries are claimed by him Following deductions are claimed by him:

i) Collection charges of preference share ii) Allowable depreciation on building & Machinery

Rs. 200/

Rs. 4,000/-

iii) Fire Insurance on Building & Machinery

Rs. 100/-

Answer 1

To compute the income under the head "income from other sources," we need to sum up all the relevant incomes and subtract any allowable deductions.

Dividend income from equity shares:

Rs. 6007 + Rs. 3200 = Rs. 9,207

Dividend on Preference Shares:

Rs. 17,000

Income from letting building and machinery:

Rs. 2,500

Interest on Bank Deposits:

Rs. 1,200

Directors sitting fee:

Rs. 600

Ground rent received:

Rs. 10,000

Income from undisclosed sources:

Rs. 10,000

Now, let's calculate the deductions:

i) Collection charges of preference share:

Rs. 200

ii) Allowable depreciation on building & machinery:

Rs. 4,000

iii) Fire Insurance on building & machinery:

Rs. 100

Total deductions:

Rs. 200 + Rs. 4,000 + Rs. 100 = Rs. 4,300

Finally, to compute the income from other sources:

Total income from other sources = (Total income - Total deductions)

= (Rs. 9,207 + Rs. 17,000 + Rs. 2,500 + Rs. 1,200 + Rs. 600 + Rs. 10,000 + Rs. 10,000) - Rs. 4,300

= Rs. 46,207 - Rs. 4,300

= Rs. 41,907

Therefore, the income from other sources is Rs. 41,907.