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: Income from Other Sources (Sections 56–58) – Detailed Analysis Under the Income Tax Act, 1961 , there are five main heads of income — salary, house property, business or profession, capital gains, and income from other sources. The fifth head, “Income from Other Sources,” acts as a residual head . This means that if any income cannot be taxed under the other four heads, it will be taxed under this head. The purpose of these sections is to ensure that no income escapes taxation just because it doesn’t belong to a specific category. Section 56 – Charging Section Section 56(1) is the main charging section. It says that any income which is not chargeable to tax under any other head will be taxed under the head “Income from Other Sources.” In simple terms, it means all leftover or miscellaneous incomes are included here. Some common examples include dividends , lottery winnings , interest income , rent from sub-letting , gifts received without consideration , and family pension ....