Heads Of Income :-
There are different sources of income. Income of a person
may be divided under the following six heads when we want to calculate the
income tax. It is necessary to classify the income under various heads. Because
every source of income has separate rules for exemption. Such policy is adopted
to provide justice. Other benefit is that all types of income under this head
may create difficulties for assessment.
These are six heads of income which are given below :
1.
Salary
2.
Income from house property.
3.
Income from business or profession.
4.
Capital gains.
5.
Income from other sources.
Now if any person who earns the income will fall in any one
of the above head. There is also one general head which is called other sources
it is very important. If the income of any person does not fall in the first
four heads then it will be included the last one.
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