Which Of The Following Heads Are The Head Of Income Under Income Tax Act 1961?

Profits incurred on the sale of imports, incentives, any interest or form of salary or bonus, a commission from a firm, all are

taxable

under the head of income in the Income Tax Act.

What are the heads of income under the Income Tax Act 1961?

As per the income tax act 1961, one’s income is divided into 5 categories —

income from Salary, income from house property, income from business profit, income from investments/capital assets and income from other sources

.

What are the different heads of income under the income tax Act?

A. There are five heads of income—

salary, income from house/property, profit from business or profession, capital gains and income from other sources

. Interest on NSC is taxable under the head “income from other sources”.

What are the income tax heads?

Income from Profits of Business

Profits earned by the

assessee

during the assessment year. Profits on income by an organization. Profits on sale of a certain license. Cash received by an individual on export under a government scheme.

Who is a person under income tax Act 1961?

An income tax assessee

is a person who pays tax or any sum of money under the provisions of the Income Tax Act, 1961. The term ‘assessee’ covers everyone who has been assessed for his income, the income of another person for which he is assessable, or the profit and loss he has sustained.

What are the exempted incomes?

• House Rent Allowance.
• Leave Travel Allowance.
• Leave Encashment Amount.
• Pension Amount.
• Gratuity Amount.
• Any form of perquisites received.
• Amount received from a Voluntary Retirement Scheme.

What are 5 sources of income?

• Earned Income. This one is easy enough to understand – this is your regular job and most people’s primary source of income. …
• Business Income. …
• Interest Income. …
• Dividend Income. …
• Rental Income. …
• Capital Gains. …
• Royalties or Licensing Income.

What are the six incomes that are chargeable to income tax under the head salaries?

• wages,
• any annuity or pension,
• any gratuity,
• any fees, commission, perquisite or profits in lieu of or in addition to any salary or wages,
• any advance of salary,

Who control the income tax department?

The Income Tax Department (also referred to as IT Department or ITD) is a government agency undertaking direct tax collection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance. Income Tax Department is headed by

the apex body Central Board of Direct Taxes (CBDT)

.

Which income is taxable on the head of other sources?

Any income which is not chargeable to

tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”. Basis of Charge [Sec. 56]:

What are the 3 types of income?

There are three types of income-

earned, portfolio and passive

. There is also a small subset of passive income called non-passive income.

How is income from all heads of income tax calculated?

Find out

total gross salary = basic salary + Dearness Allowance + Entertainment Allowance

, i.e., 2,50,000 + 10,000 + 3,000 = 2,63,000. Income tax rate on income Rs. 2,61,500 is 5%, which will be equal to Rs. 13,075 and this much amount will be taxable.

How the income tax is calculated?

Is trust a person under Income Tax Act?

Trust

formed for charitable or religious purposes

which are not intended to do commercial activities are allowed various benefits under the Income-Tax Act, inter-alia, exemption under section 11. The term religious purpose is not defined under the Income-Tax Act.

What income consists of?

For households and individuals, income is a sum that includes

any wage, salary, profit, interest payment, rent, or other form of earnings received in a given period of time

(also known as gross income).

What is difference between individual and body of individual?

Association

of Persons (AOP) means a group of persons who come together for achieving a common objective and have the same mindsets. Members of the AOP can be natural or artificial persons. Body of Individuals (BOI) means a group of individuals (natural persons) who join together for earning income.