Gross residuary income
56. (1) The gross residuary income shall include all accruals, or receipts, in the nature of income, which do not form part of,-
(a) income from special sources; and
(b) income under any of the heads specified in items A to D of section 14.
(2) The gross residuary income shall, regardless of anything to the contrary contained in Part-B to Part-E of this Chapter and without prejudice to the generality of the provisions of sub-section (1), include the following, namely:-
(a) dividends, other than dividends in respect of which dividend distribution tax has been paid under section 99;
(b) interest, other than interest accrued to, or received by, permitted financial institutions;
(c) income from the activity of owning and maintaining horses for runnning in horse race;
(d) any amount received from his employees as contributions to any fund setup for their welfare, if the income is not included under the head "Income from business";
(e) income from machinery, plant or furniture belonging to the person and let on hire, if the income is not included under the head "Income from business";
(f) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy;
(g) any amount received under a Keyman insurance policy including the sum allocated by way of bonus on such policy, if such income is not included under the heads "Income from employment" or "Income from business";
(h) the aggregate of any moneys and the value of any specified property received, without consideration, by an individual or a Hindu undivided family;
(i) the amount of voluntary contribution received by a person, other than an individual or a Hindu undivided family, from any other person;
(j) any amount received, or retained, on account of settlement or breach of any contract, if not included under the head "Income from business";
(k) any payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, if -
(i) the payment or aggregate of payments is in respect of any expenditure referred to in clause (a) of sub-section (1) of section 57;
(ii) the expenditure is allowable as a deduction in any financial year;
(iii) the payment or aggregate of payments exceeds a sum of-
(A) thirty thousand rupees if the payment is made for carriage of goods by road; and
(B) twenty thousand rupees in any other case; and
(iv) it has not been incurred in such cases and under such circumstances, as may be prescribed;
(l) any amount found credited in the books of an person maintained for the financial year, if -
(i) the person offers no explanation about the nature and source thereof; or
(ii) the person offers an explanation but fails to substantiate the explanation; or
(iii) the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory;
(m) the value of any investment made by the person in the financial year to the extent for which,-
(i) the person offers no explanation about the nature and source of the investments; or
(ii) the person offers an explanation but fails to substantiate the explanation; or
(iii) the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory;
(n) the value of any money, bullion, jewellery or other valuable article owned by the person to the extent for which,-
(i) the person offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article; or
(ii) the person offers an explanation but fails to substantiate the explanation; or
(iii) the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory;
(o) the amount of any expenditure incurred by the person in the financial year, if-
(i) the person offers no explanation about the source of such expenditure or part thereof; or
(ii) the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactory;
(p) any amount received as loan or deposit, otherwise than by an account payee cheque or account payee bank draft, from any person, if the aggregate amount of such loan or deposit exceeds twenty thousand rupees;
(q) any repayment of loan or deposit, otherwise than by an account payee cheque or account payee bank draft, if the aggregate amount, including interest, due to the payee, either in his own name or jointly with any other person, on the date of such repayment exceeds twenty thousand rupees;
(r) any amount received, or withdrawn, under any circumstances, from any account maintained with any permitted savings intermediaries, referred to in sub-section (2) of section 66, representing,-
(i) the principal amount of the savings; or
(ii) interest, dividend, bonus, capital appreciation or any other form of return on the investment, by whatever name called;
(s) any amount deemed to be the income under sub-section (6) of section 71.
(t) the value of the net assets, held by any person on the first day of the financial year in which the person ceases to be a non-profit organisation, determined in the prescribed manner.
(u) any consideration accrued, or received, in respect of transfer of any business asset, which is self-generated, if the consideration is not included under the head 'income from business';
(v) any amount accrued, or received, on account of the cessation, termination or forfeiture of any agreement entered by the person, if the amount is not included under the head 'income from business';
(w) any amount accrued, or received, as reimbursement of any expenditure incurred by the person, if the amount is not included under the head 'income from business';
(x) any amount received, or withdrawn, under any circumstances from the account maintained under the Capital Gains Savings Scheme representing the principal amount or any accretion thereto;
(y) any amount received, or withdrawn, under any circumstances from the Retirement Benefit Account referred to in sub-section (2) of section 22, representing the principal amount or any accretion thereto; and
(z) any amount accrued, or received, as advance, security deposit or otherwise, from the long term leasing or transfer of whole or part of, or any interest in, any investment asset.
(3) The amount referred to in clause (h) of sub-section (2) shall not include any amount received -
(a) from any relative;
(b) on the occasion of the marriage of the individual;
(c) under a will or by way of inheritance;
(d) in contemplation of death of the payer;
(e) from any local authority; or
(f) from any non-profit organisation.
(4) For the purposes of this section,-
(a) 'relative' shall not include any person referred to in sub-clause (g) of clause (233) of section 284;
(b) 'specified property'shall mean-
(i) immovable property being land or building or both;
(ii) shares and securities;
(iii) jewellery;
(iv) archaeological collections;
(v) drawings;
(vi) paintings;
(vii) sculptures; or
(viii) any work of art;
(c) the assessee shall be deemed not to have received, or withdrawn, any amount in the financial year from any account maintained with any permitted savings intermediary, if the amount is used for,-
(i) purchasing an annuity plan; or
(ii) rolling over the amount from one account with the permitted savings intermediary to any other account with the same or any other permitted savings intermediary; and
(d) value of any property referred to in clause (h) of sub-section (2) shall be,-
(i) the stamp duty value in the case of an immovable property as reduced by the amount of consideration, if any, paid by the assessee; and
(ii) the fair market value in the case of any other property as reduced by the amount of consideration, if any, paid by the assessee;
