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Section 92 Income Tax Act 2025: What Is Income from Other Sources?

Section 92 of the Income-tax Act, 2025 charges income under the residual head "Income from other sources" when it is neither exempt nor taxable under the four other specified heads. It expressly addresses dividends, winnings, certain interest, forfeited advances, receipts of money or property and other specified amounts.

Current law: The Income-tax Act, 2025 applies from 1 April 2026. Section 92 broadly replaces Section 56 of the Income-tax Act, 1961. Read the section with Sections 93 to 95 for deductions, disallowances and related rules, and with the applicable special-rate and withholding provisions.

1. When is income taxed under Section 92?

Under Section 92(1), income not excluded from total income is chargeable under "Income from other sources" if it is not chargeable under the heads identified in Section 13(a) to (d). This is a residual charging provision: the legal nature of a receipt must be examined before placing it under this head. An exempt receipt does not become taxable merely because it is not business or salary income.

2. Which receipts are covered by Section 92(2)?

Dividends: dividend income, subject to other applicable provisions.
Winnings: lotteries, crossword puzzles, races (including horse races), card games, gambling and betting; special provisions may govern certain online-game winnings.
Employees' contributions: amounts received by an employer towards specified welfare funds, where not taxed as business income.
Keyman insurance: policy receipts and bonuses where not taxable as salary or business income.
Interest on securities: where not assessed as business income.
Hire income: receipts from hiring out machinery, plant or furniture, and inseparable letting of buildings with those assets, where not assessed as business income.
Forfeited advance: money forfeited during negotiations for a capital-asset transfer where the transfer does not occur.
Compensation interest: interest on compensation or enhanced compensation referred to in Section 278(1).
Employment-related compensation: payments connected with termination of employment or changes to its terms.
Business trust distributions: specified amounts received by unit holders under the statutory computation in Section 92(2)(k).
Other specified receipts: including the receipts dealt with in Section 92(2)(l) and money or property covered by Section 92(2)(m). For the exact conditions and computations, consult the official text.

Important: Section 92 identifies taxable categories. It does not by itself establish that all receipts are taxed at ordinary slab rates. Special rates, exemptions, withholding and computation rules must be considered separately.

3. When are gifts and property receipts taxable?

Section 92(2)(m) contains rules for money and property received without adequate consideration, subject to exceptions in Section 92(3). The principal thresholds are:

Money received without consideration: If the aggregate received from one or more persons in a tax year exceeds Rs. 50,000, the whole qualifying amount is generally taxable, not merely the excess.

Immovable property received free: If its stamp duty value exceeds Rs. 50,000, that stamp duty value is generally chargeable.

Immovable property bought below stamp duty value: The difference is generally taxable if it exceeds the higher of Rs. 50,000 or 10% of the consideration, subject to the statutory valuation rules.

Specified movable property received free: If aggregate fair market value exceeds Rs. 50,000, the whole aggregate fair market value is generally taxable.

Specified movable property bought below fair market value: The excess of aggregate fair market value over consideration is generally taxable where that excess exceeds Rs. 50,000.

For immovable property, Section 92(4) provides a special rule for using the stamp duty value on the agreement date rather than the registration date where the prescribed payment-mode and timing conditions are met. A disputed stamp duty valuation may also be referred to a Valuation Officer in the circumstances specified by law.

4. Which gifts are excluded from these rules?

Section 92(3) excludes specified money or property receipts from Section 92(2)(m), including receipts from a defined relative, on an individual's marriage, under a will or by inheritance, in contemplation of the donor's death, from qualifying local authorities and certain registered non-profit organisations, and under specified non-transfer transactions. Certain trusts for relatives and prescribed classes are also covered. The exact conditions and exceptions must be checked before claiming relief.

5. Important statutory definitions under Section 92(5)

Relative: For an individual, includes spouse; siblings of the individual or spouse; siblings of either parent; specified lineal ascendants and descendants of the individual or spouse; and spouses of certain such persons. For an HUF, any member of the HUF is included. See Section 92(5)(g) for the complete wording.

Property: Specified capital assets including land or buildings, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, works of art, bullion and virtual digital assets; see Section 92(5)(f).

Fair market value: For property other than immovable property, value determined by the prescribed method; see Section 92(5)(c).

Lottery: Includes prizes awarded by draw of lots, chance or another arrangement described in Section 92(5)(e).

Card game and other game of any sort: Includes certain game shows and entertainment competitions conducted on television or electronically; see Section 92(5)(b).

Assessable and jewellery: These expressions cross-refer to Section 2(105) and Section 2(22), respectively.

6. Practical examples

Example A: Cash gift from a non-relative

A person receives Rs. 75,000 without consideration from a friend during the tax year. Assuming no statutory exception applies, the entire Rs. 75,000 is taxable under Section 92(2)(m), because the aggregate exceeds Rs. 50,000.

Example B: Gift from a parent

A parent gifts Rs. 5,00,000 to an adult child. A parent falls within the defined category of relative, so the gift is excluded from Section 92(2)(m), subject to any other independently applicable provisions.

Example C: Purchase of immovable property

A buyer pays Rs. 40,00,000 for property with a stamp duty value of Rs. 46,00,000. The difference is Rs. 6,00,000, exceeding both Rs. 50,000 and 10% of the consideration (Rs. 4,00,000). Ordinarily, Rs. 6,00,000 is taxable to the buyer under the specified rule, subject to valuation and other exceptions.

Example D: Forfeited booking advance

An owner receives an advance of Rs. 2,00,000 towards a proposed sale of a capital asset, retains it after the buyer defaults, and the transfer does not take place. The forfeited amount is ordinarily covered by Section 92(2)(h), subject to the facts and relevant provisions.

7. Frequently asked questions

Is every bank interest receipt taxed under Section 92?

Interest may be taxed under this head if it does not belong under another head and is not exempt. The source, nature of the receipt and any applicable deduction or special provision must be checked.

Is the Rs. 50,000 gift threshold a deduction?

No. For qualifying gifts of money without consideration, once the aggregate exceeds Rs. 50,000, the whole amount is generally chargeable, subject to Section 92(3).

Are wedding gifts taxable?

Money or property received by an individual on the occasion of that individual's marriage is excluded from Section 92(2)(m). The factual connection to the marriage and documentation may matter.

Can expenses be deducted from income from other sources?

Only deductions permitted by the Act can be claimed. Section 93 provides relevant deductions and Section 94 disallows certain amounts, including expenditure connected with specified winnings.

What is the corresponding provision under the 1961 Act?

Section 92 of the Income-tax Act, 2025 broadly corresponds to Section 56 of the Income-tax Act, 1961. Section numbering and individual cross-references have changed.

8. Official sources and related provisions

Official Section 92 Income-tax Act 2025 as amended Income Tax e-Filing Portal

Last reviewed: 10 November 2026. This article is a general explanation, not a substitute for the statutory text or case-specific advice.