Section ____________ of the Income Tax Act, 1961 classifies income under ____________ heads of income.
Income Tax Act 1961: Heads of Income Classification
The Income Tax Act, 1961, provides a framework for taxing income earned by individuals and entities in India. A key aspect of this framework is the classification of income into distinct categories.
Section 14 of the Income Tax Act, 1961, specifies how income is to be computed. It states that income computable under the Act shall be classified under the following five heads:
- Salaries
- Income from House Property
- Profits and Gains of Business or Profession
- Capital Gains
- Income from Other Sources
Therefore, Section 14 classifies income under five heads of income.
Important Questions from Income-tax
Tax audit is compulsory in the case of a person carrying on profession and whose gross receipts exceeds which one of the following?
Which are the appropriate tax planning perspectives in case of shutdown or continued decision under the Income Tax Act, of 1961?
A. Business loss and unabsorbed depreciation can be carried forward and set off against profit and gain.
B. The loss-making company and profit-making company may merge to avail of the tax benefit
C. Tax benefit of deduction u/s 33 AB and 115 VT may be withdrawn and liable to tax for the year in which the business is discontinued.
D. The condition of section 80 IB / 80 IC of the Act, a deduction is allowed for such undertaking
E. If a person has more than one business, the loss-making business may not be discontinued.
Choose the most appropriate answer from the options given below:
Belated return u / s 139(4) can be filled at any time
Which of the following is NOT a change of the new Income Tax bill introduced in the Parliament during February 2025?
What is the basic difference in the aggregates at market price and factor cost?
