Remuneration received by a Member of a State Legislature (i.e. Assemblies and Councils) will also be assessable as 'income from other sources' under section 56 of the Income-tax Act, 1961.

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.... Income - Tax Act, 1961 The Board had recently an occasion to examine the question as to whether the "Salaries and Allowances' of the Members of the State Legislative Assemblies are assessable as 'Income from other sources' under section 56 of the Income-tax Act, 1961 or as 'salaries' under section 15 of the said Act and also whether any expenses should be allowed as deduction under section 57(....

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.... F.No. 200/15/70-IT(AI) dated 22.5.1970 wherein instructions were issued regarding the deduction of expenses under section 57(iii) against the allowances of a Member of Parliament. Following the decision contained in the said letter, it has also been decided by the Board that for the sake of uniformity and administrative convenience a deduction of Rs.100 per month or 1/5th of the monthly allowance....