Heads of Income - Definition / Legal Terminology - Income Tax

HEADS OF INCOME According to Section 14 of Income Tax Act, 1961 , the income of a person is classified under five defined heads of income, which are as follows - Salaries. Income from house property. Profits and gains of business or profession. Capital gains. Income from other sources. Thus, for the purpose of computation of total income , the income is first categorized under these heads of income and then charged to Income Tax in accordance with the provisions and rules as specified in the Income Tax Act.