SALARY

HEAD OF INCOME


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                                   there are different sources of income. Income of a person  may be divided under the following six heads when we want to calculate the income tax .It  is necessary to classify the income under various heads. Because every source of income has separate rules for exemption. Such policy is adopted to provide justice. Other benefit is that all types of income under this head may create difficulties for assessment.
             These are six heads of income which are given below;
a: Salary
b:Income from house property
c: Income from business or profession  
d:Capital gains 
e: Income from other sources
        Now if a person who earns the income will fall in any one of  the above head. There is also one general head which is called other sources it is very important .If the income of any person dose not fall in the first four heads then it will be included the last one.
     SALARY ::
                       It is the first source which is given in the head of income. It is chargeable to tax.The team salary , is used in the wider sence.It includes the following receipts.
                        1: Salary and wages
                        2: Profits in lieu of or in addition to salary or wages.
                        3: Fees commission or allowance.
                        4: Annuity, pension or gratuity.
                         5: Perquisites.