Segregating income in these 5 heads can simplify ITR filing Income tax calculator
July, 23rd 2021
Income tax calculator: While filing income tax return (ITR), it’s important for the taxpayer to know the various categories of income segregated by the income tax department. 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. According to tax and investment experts, an earning individual can earn in various ways but Section 14 of the Income Tax Act 1961 stipulates these incomes in these 5 categories. So, a taxpayer is advised to divide one's income in these 5 categories for simplifying its job during ITR filing.
Speaking on how income tax department categorises a taxpayers income SEBI registered tax and investment expert Jitendra Solanki said, "As per the Section 14 of the Income Tax Act 1961, an individual can earn from various ways but finally it would fall in five categories — income from salary, income from house property, income from profit in business, income from investments or capital assets and income from other sources."