<p>HEADS OF INCOME<br /> <br />Income from salary<br /><br />Income can be charged under this head only if there is an employer employee relationship between the payer and payee. <br />Includes basic salary or wages, any annuity or pension, gratuity, advance of salary, leave encashment, commission, perquisites in lieu of or in addition to salary and retirement benefits. <br /> <br />Income from house property<br /><br />Any residential or commercial property that you own will be taxed as well. Even if your piece of real estate is not let out, it will be considered earning rental income and you will need to pay tax on it Includes capacity of the real estate to earn income and not the actual rent <br /> <br />Profits and gains ofbusiness or profession<br /><br /> Income earned through your profession or business is charged under the head “profits and gains of business or profession”.<br />Includes difference between the credits received on running the business and expenses incurred<br /><br />Capital gains<br /><br />Any profit or gain arising from transfer of capital asset held as investments are chargeable to tax under the head “capital gains” Includes short term capital gains and long term capital gains <br /> <br />Income from other sources<br /><br />Any income that does not fall under the four heads above is taxed under the head “income from other sources”<br />Includes miscellaneous incomes</p>
<p>HEADS OF INCOME<br /> <br />Income from salary<br /><br />Income can be charged under this head only if there is an employer employee relationship between the payer and payee. <br />Includes basic salary or wages, any annuity or pension, gratuity, advance of salary, leave encashment, commission, perquisites in lieu of or in addition to salary and retirement benefits. <br /> <br />Income from house property<br /><br />Any residential or commercial property that you own will be taxed as well. Even if your piece of real estate is not let out, it will be considered earning rental income and you will need to pay tax on it Includes capacity of the real estate to earn income and not the actual rent <br /> <br />Profits and gains ofbusiness or profession<br /><br /> Income earned through your profession or business is charged under the head “profits and gains of business or profession”.<br />Includes difference between the credits received on running the business and expenses incurred<br /><br />Capital gains<br /><br />Any profit or gain arising from transfer of capital asset held as investments are chargeable to tax under the head “capital gains” Includes short term capital gains and long term capital gains <br /> <br />Income from other sources<br /><br />Any income that does not fall under the four heads above is taxed under the head “income from other sources”<br />Includes miscellaneous incomes</p>
