Income of every kind which is not exempt from the total income under this Act and if it is not chargeable chargeable to income - tax under...
Income of every kind which is not exempt from the total income under this Act and if it is not chargeable chargeable to income - tax under any of the heads specified in section 14 , items A to E.shall be chargeable to income-tax under the head "Income from other sources"
B) Interest on securities omitted w.e.f. 1-4-1989,
C)Income from house property,
D) Profit & gain from business & profession.
E) Capital gains
Under section 56 ( 1 ), income of every kind which is not to be excluded from the total income shall be chargeable to income-tax. The emphasis is on that income of every kind. To tax Any amount under this section, it must have some character of income.
Taxability of capital receipt u/s 56(1):
It is a settled proposition of law that capital receipts, unless specifically taxed under any provisions of the Act, are excluded from income.
Thus the income of capital in nature not specifically taxed cannot be taxed under section 56(1).