The word Income has a very broad and inclusive meaning. In case of you’re a salaried employee all that is received from your employer in cash, kind or as a facility is considered as income. If you’re a businessman, your net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, Commission, etc.
Under the Income Tax Act, 1961, all Income earned by persons are classified into 5 different heads, such as:
- Income from Salary
- Income from House Property
- Income from Business or Profession
- Income from Capital Gains
- Income from other sources