Section 92 of the Income-tax Act, 2025 — Income from Other Sources: The Charging Section

In plain language

What Section 92 actually says

Section 92 is the charging section for the head "Income from Other Sources" under the new Income-tax Act, 2025 (in force from 1 April 2026). It is the direct successor to Section 56 of the old Income-tax Act, 1961 — the wording and structure are almost identical, only the section number has changed.

The core rule is simple: any income of every kind that is not to be excluded from total income, and that is not chargeable under any of the other four heads, is taxed here. The other four heads are listed in Section 13(a) to (d) of the 2025 Act — Salaries, Income from House Property, Profits and Gains of Business or Profession, and Capital Gains. So "Income from Other Sources" (often shortened to IFOS) is the residual or catch-all head. If money is income, is not exempt, and does not naturally belong to any other head, it lands here.

Who it applies to

• Every taxpayer — individuals, HUFs, firms, LLPs, companies, AOPs — can have income under this head.
• It is especially relevant for ordinary savers and salaried people, because everyday receipts like bank/FD interest, savings account interest, dividends, and gifts are taxed under Section 92.
• It also captures one-off receipts such as lottery and game-show winnings, online gaming winnings, and interest on income-tax refunds.

The specific incomes listed in Section 92

Section 92(1) is the general residual charge. Section 92(2) then gives a non-exhaustive list of receipts that are always taxed under this head (unless they qualify as business income). The main ones are:

• Dividends — including deemed dividends.
• Winnings from lotteries, crossword puzzles, races (including horse races), card games, gambling, betting and online games — taxed at a flat 30% with no deductions and no basic-exemption benefit.
• Interest on securities, where not taxed as business income.
• Income from letting out machinery, plant or furniture on hire (where it is not business income).
• Income from a building let inseparably with such machinery/plant/furniture.
• Employees' contributions to PF/superannuation/welfare funds received by an employer but not deposited in time.
• Keyman insurance policy receipts (including bonus) not taxable as salary or business income.
• Sum received under a life insurance policy (over premiums paid) where it is not exempt.
• Forfeited advance money received in negotiations for transfer of a capital asset.
• Interest on compensation / enhanced compensation.
• Gifts — any sum of money or property received without (or for inadequate) consideration above ₹50,000 (see below). This replaces the old Section 56(2)(x).

The ₹50,000 gift rule — the part most people ask about

• Money: If the aggregate of money received without consideration from non-relatives in a year exceeds ₹50,000, the entire amount is taxable (not just the excess).
• Immovable property (gift): If received free and the stamp duty value exceeds ₹50,000, the whole SDV is taxable.
• Immovable property (underpriced purchase): If you pay less than stamp duty value, the difference is taxed only if it exceeds the higher of ₹50,000 or 10% of the consideration.
• Movable property (jewellery, shares, art, etc.): taxable if fair market value (or the shortfall) exceeds ₹50,000.

Exempt gifts (no tax, any amount) include gifts from relatives, gifts on the occasion of your own marriage, receipts under a will or inheritance, gifts in contemplation of death, and receipts from local authorities and registered charitable institutions. "Relative" covers spouse, lineal ascendants and descendants, siblings, and their spouses (and for an HUF, any member).

How it interacts with other sections and permitted deductions

• Deductions for expenses incurred to earn this income (commission, collection charges, etc.) are allowed under the corresponding deduction provision of the 2025 Act — but no deduction is allowed against winnings.
• Standard deduction of 50% on interest on enhanced compensation continues.
• Family pension gets a standard deduction under this head.
• TDS provisions (e.g., on winnings and on dividends) feed into this head; the gross amount is taxed and TDS is credited.

Practical takeaway: Report all bank interest, dividends and taxable gifts here even if small — the department gets this data through AIS/Form 26AS, and mismatches trigger notices.