When filing your Income Tax Return (ITR) for the financial year 2022-2023, it is essential to report your income under the following five heads, as per Section 14 of the Income Tax Act:1) Income from salary 2) Income from house property 3) Income from profits and gain of business or profession 4) Income from capital gains 5) Income from other sources
Income from salary: This includes all income received as salary, wages, pension, annuity, gratuity, fees, commission, profits, leave encashment, annual accretion, and transferred balance in recognized Provident Fund (PF) and contribution to the employee’s pension account.
Income from house property: Rental income from properties owned by a person, other than those occupied by the owner, is charged as income from house property. If the property is vacant, a notional income is also included under this head.
Income from profits and gains of business or profession: This includes income from a business entity or a profession, and any interest, salary, or bonus received by a partner of a firm.
Income from capital gains: Income from capital gains comprises long-term capital gains (LTCG) and short-term capital gains (STCG) on the sale of any capital assets.
Income from other sources: This includes income from various sources such as interest on bank deposits and securities, dividends, royalty income, winnings from lotteries and races, and gifts received, among others.
Source By: livemint
