Among the five specified heads of the income, “Income from Other Sources” is the residuary head covering income from Winning from lotteries, horse-races, gambling, interest, dividend, family pension received by a widow etc.

Interest can be assessed under Other Sources only if it cannot be brought within one or the other specified heads of the income.

Here, are the lists of few interest incomes assessable under “Income from Other Sources”. They are as follows:

• Interest income of company in winding-up :  At the time of liquidation of a company, certain assets are realized by the liquidators & if the same is invested in interest bearing deposits, then such interest earned on the deposit are taxable under other sources.
  

• Interest on income tax refunds: Interest received from Government as income tax refund is chargeable under other sources.
  

• Interest received on PF Contribution: Any amount received as interest by an employee on his own contributions to an unrecognized PF is chargeable under other sources.
  

• Interest income prior to commencement of business: In case, a company invests its share capital in banks, then the amount of interest received prior to its commencement is taxable under other sources.
  

• Interest earned by the assessee from the short term investment in public issue of surplus money is taxable as other sources.
  

•  Interest income on short term investment of funds borrowed for setting up of factory before commencement of business is chargeable under other sources.
  

• Interest earned by a company of deposits during pre-construction period cannot be set-off against pre-operative expenses & is chargeable under other sources.
  

• Interest received from the fixed deposit of surplus funds by the assessee.
  

• Interest on deposit made out of share application money by a company.
  

• Interest earned on investment of funds, when no business is carried out in the year.