Heads of income

2.  Income from Salary
 Income from House Property
 Income from Profit or Gain from Business or
Profession
 Capital Gain
 Income from other Sources

3.  Salary u/s 17(1) includes:
• Wages
• Pension
• Gratuity
• Any fees, commission, Perquisites, Profit in lieu
of Salary
• Any advance Salary

4.  Conveyance Allowance
 Children Education Allowance
 Hostel allowance
 Transport Allowance
 House Rent allowance
 Provident Fund
 Gratuity
 Leave Travel Concession
 Entertainment allowance
 Encashment of Earned leave during Retirement

5.  Chargeable u/s 22 of the Income-tax Act, 1961
 Income from House, building, bungalows
 Assessee should be the owner of the property

6.  Chargeable u/s 28 of the Income-tax Act, 1961
 Includes:
 Profit/Gain from any business/Profession
 Duty drawback
 Value of benefit arising from any
business/profession
 Income derived by trade/profession
 Income from speculative transaction
 Income received under keyman insurance policy
 Any Interest, Salary, Bonus, commission or
remuneration received by partner of a firm.

7.  Rent taken
 Repairs not in a nature of capex
 Insurance premium and repairs u/s 31 of the
Act
 Deductions allowed w.r.t depreciation of
buildings, plant & machinery u/s 32

8.  Chargeability U/s 45 of the Income-tax Act
2016
 Tax liability arises when following conditions
are satisfied:
 There should be a Capital Asset
 There should be a Transfer
 Transfer should be in previous year
 Result of transfer should be profit or gain
 Such Profit/Gain is not exempt

9.  Any Stock-in-Trade
 Movable Property (excludes jewellery
archeological, Drawings, Paintings, Sculpture)
 Agricultural Rural Land
 Special Bearer Bonds 1991
 Gold Deposit Bond issued under Gold deposit
scheme 1999

10.  Short Term Capital Asset
 Long Term Capital Asset

11.  Chargeability U/S 56(2)
 Includes:
o Dividend
o Windfall from lotteries crossword gambling
o Income by way of interest on securities
o Income from Royalty
o Director fees
o Income from investment

12.  Aggregate of incomes computed under the five
heads( salary , house property, business or
profession, capital gain, other sources) of
income after applying clubbing provisions and
making adjustments of set off and carry
forward of losses is known as gross total
income.

13.  The amount left after making deductions from
the gross total income is known as total income
 Total income is rounded off to nearest
multiples of ten rupees.