Q.Distinguish between 'Sources of Income' and 'Heads of Income', with an example.

A person can have many sources of income, but the Act only recognises five heads under which to group them.

A Source of Income is the specific, individual origin from which a particular item of income arises — for example, Employer A, Employer B, a specific rented flat, or a specific business. A Head of Income, by contrast, is one of the five broad statutory categories fixed under Section 14 into which every source is grouped for the purpose of computing tax. A single person can have several sources under the very same head: for instance, a person employed simultaneously by two different companies has two SOURCES of salary income (Employer A and Employer B), but both are computed together under the single HEAD 'Salaries'. Similarly, rent received from two different flats gives two …

Treating 'source' and 'head' as the same idea, or assuming each source automatically gets its own separate head — remember sever …