Income under various heads of income

The income of an indi­vid­ual per­son can be divided into five heads -

1.Income from Salaries

Income which arises out of an employee – employer rela­tion­ship falls under the head Salary. Salary is taxed either on receipt or on due basis, whichever comes earlier.

2.Income from House Property

Income from let­ting out shops would be con­sid­ered income from house property.

3.Income from Prof­its and Gains of Busi­ness or Profession

Income earned by an assessee as a profit or gain in her busi­ness or profession.

4.Income from Cap­i­tal Gains

A cap­i­tal gain is income derived from the sale of an investment.

5.Income from Other sources

All income other than income from salary, house prop­erty, busi­ness and pro­fes­sion or cap­i­tal gains is cov­ered under ‘Income from other sources.

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