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