What are the 5 Heads of Income?

The five heads of income are: Income from Salary: This includes all forms of remuneration received by an individual for their employment, such as salaries, wages, bonuses, commissions, pensions, and allowances. Income from House Property: This covers rental income earned from properties leased out by the taxpayer. It also includes income from self-occupied properties after deducting the standard deduction or interest paid on home loans.

Income from Capital Gains: This comprises profits or losses incurred from the sale of capital assets like land, buildings, shares, bonds, and mutual funds. It's categorized into short-term and long-term capital gains based on the duration of asset ownership.

Income from Business and Profession: This includes profits or losses from any business or profession carried out by the taxpayer. It encompasses trade, commerce, manufacturing, professional services, and other similar activities. Business income is further classified into speculative business income, non-speculative business income, and specified business income.

Income from Other Sources: This covers all income that doesn't fit into the above categories. It includes interest from savings accounts or deposits, dividends from investments, income from lotteries or games, gifts received, and any other miscellaneous income.