Types of income under income tax act

Taxes & GST Income Tax
1

Hello, can anyone explain to me the types of income under the Income Tax Act? It would be a great help.

2

Hello, let me help you with this question of types of income under the Income Tax Act.

Types of Income under the Income Tax Act

As per the Income Tax Act, income is mainly divided into 5 heads. These are:

  • Income from Salary: It includes the money you earn from your job or employer.

  • Income from House Property: These are the rent money earned from a house or building you own.

  • Income from Business or Profession: It includes the profits that you have earned from business or self-employment.

  • Income from Capital Gains: So, if you’ve earned profit after the sale of something like shares, land, or property at a higher price then it come under income from capital gains.

  • Income from Other Sources: Any other income, like interest from bank deposits, lottery winnings, gifts, etc.