Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
ET Wealth
11,346.20-73.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

What are the five heads of income under Income Tax Act?

Incomes earned by you during the year are divided into five heads under the I-Tax Act. Here's a look at how these incomes are classified.

ET CONTRIBUTORS|
Updated: Jul 19, 2019, 12.37 PM IST
0Comments
tax3-etonline
Start ITR filing work: Avoid late filing penalty
1. Income for salary include wages, pension, annuity, gratuity, fees, commission, profits, leave encashment, annual accretion and transferred balance in recognised Provident Fund (PF) and contribution to employees pension account.

2. Rental Income from properties owned by a person other than those which are occupied by him are charged as income from house property. If property is vacant then a notional income is included under this head.

3. Income from business or profession includes profit/loss from a business entity or a profession, any interest, salary or bonus to a partner of a firm.

4. Income from capital gains includes long term capital gains (LTCG) and short term capital gains (STCG) on sale of any capital assets.

5. Income from other sources includes interest on bank deposits and securities, dividend, royalty income, winning on lotteries and races and gifts received among others.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
0Comments

Also Read

Government targets to add 1.3 crore income tax filers this fiscal

5 smart things to know about income tax return

Budget 2019 analysis: What income tax changes mean for you

Will higher income-tax burden on top talents raise costs of top firms?

Income tax return filing: Here's your step by step guide

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service