Head #5 of 5 + VDA
Income from Other Sources + India's 30% Crypto Tax
Anything that doesn't fit the first four heads lands here — FD interest, gifts, dividends, lottery winnings. And yes, the complete crypto (VDA) rulebook lives here too.
Interest Income — Fully Taxable
- Savings account, FD, RD and post-office interest — all taxable at your slab rate (there's no such thing as a 'tax-free FD')
- Old regime: savings interest up to ₹10,000 — Sec 80TTA → now Sec 153(2)(a)
- Senior citizens (60+): FD + savings interest up to ₹50,000 — 80TTB → now Sec 153(2)(b) (old regime)
- PPF and EPF interest (within conditions) is exempt — a separate matter
- Banks cut 10% TDS once annual interest crosses ₹50,000 (₹1,00,000 for seniors) — but final tax is settled at your slab rate in the ITR
Example — The FD confusion, cleared
Ritu's FD earned ₹80,000. The bank deducted 10% TDS on the amount above ₹50k = ₹3,000. Ritu's slab is 30% → her true tax is ₹24,000 + cess. TDS is just an advance cut — she must pay the balance through advance tax or in the ITR. The TDS appears in her Form 16A/AIS.
Gifts — the ₹50,000 Line
| Gift From | Treatment |
|---|---|
| Relatives (spouse, parents, siblings, in-laws, uncles/aunts...) | Always exempt — no amount limit |
| Non-relatives, up to ₹50,000/year | Exempt |
| Non-relatives, above ₹50,000/year | The ENTIRE amount is taxable (not just the excess!) |
| Wedding gifts | Fully exempt (no limit) |
| Received via will/inheritance | Exempt |
| Gift from employer above ₹5,000 | Taxable (perquisite) |
Example — A birthday gift
Aman's friend (non-relative) transferred ₹60,000 for his birthday. The year's non-relative gifts crossed ₹50k → the entire ₹60,000 is taxable at the slab rate. If his aunt had sent the same ₹60,000 (a relative) → zero tax. The relationship matters!
Crypto / VDA — Flat 30% + 1% TDS
The 2025 Act formally defines Virtual Digital Assets (crypto, NFTs) in the law itself. The tax framework:
- Flat 30% tax on profit + 4% cess — no slab benefit, no ₹12L rebate
- Only the purchase cost is deductible — electricity, mining costs and platform fees (post-purchase) are not
- No loss set-off — one coin's loss can't even offset another coin's profit!
- No loss carry-forward either
- 1% TDS on every sell/transfer (exchanges deduct it) — now under the consolidated TDS Section 393 payment codes
- VDAs received as gifts above ₹50k are taxable in the recipient's hands
Example — Trader Karan's brutal math
Karan made ₹1,00,000 profit on BTC and a ₹60,000 loss on ETH.
• Common sense says: tax on the net ₹40,000?
• The law says: ignore the loss → ₹1,00,000 × 30% = ₹30,000 tax + cess ₹1,200 = ₹31,200
• Plus 1% TDS was already cut on each trade (creditable in the ITR).
Crypto taxation in India is strict — keeping a record of every transaction is a must.
• Common sense says: tax on the net ₹40,000?
• The law says: ignore the loss → ₹1,00,000 × 30% = ₹30,000 tax + cess ₹1,200 = ₹31,200
• Plus 1% TDS was already cut on each trade (creditable in the ITR).
Crypto taxation in India is strict — keeping a record of every transaction is a must.
Dividends are also taxable at slab rates (companies no longer pay DDT). Lottery, game-show and online-gaming winnings attract a flat 30% + cess, with TDS from the first rupee of winnings. Horse racing and crosswords too.
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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