Q.Explain the five heads of income under the Income Tax Act, 1961.

Every rupee of taxable income has to be sorted into exactly one of five defined categories before tax can be computed. …

Section 14 classifies all taxable income under five heads:

1. Income from Salary — pay, allowances, and perquisites received by an employee from an employer.
2. Income from House Property — the annual value of a building/land owned by the taxpayer, whether let out or self-occupied.
3. Profits and Gains of Business or Profession (PGBP) — income from trade, commerce, manufacture, or a profession/vocation, net of allowable business expenses.
4. Capital Gains — profit from the transfer of a capital asset (land, shares, securities, etc.), split into short-term and long-term based on the holding period. …

Forgetting that 'Income from Other Sources' is a genuine, named head (not just an informal catch-all) — m …