Be an informed taxpayer; know your Income Tax in order to save better. Here are the 5 income heads, you will be get taxed on and where you are eligible to get Income Tax Refunds.
Income from Salary:
Any of the below monetary/non-monetary benefits, received by employee from his employer for the services rendered.
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Income from house property:
Any income from any building or land appurtenant thereto which is owned by assesse, and it is not used for business or profession.
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Profits and Gains of Business and Profession:
Any income derived by any person from any activity carried on by him with the intention to earn profit therefrom will be chargeable under this head of income.
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Tax Audit applicability:
For the business:If the turnover exceeds Rs.1crores.
For profession: If the professional receipt exceeds Rs.25Lacs.
If assessee is below tax audit limit, not carrying out profession and no books of accounts are maintained then he has an option to opt for presumptive taxation. ( i.e. profit @8% of turnover under section 44AD)
Income from Capital Gain:
Any appreciation/depreciation on the capital asset (movable/immovable) transferred by assessee during the previous year, then it is chargeable to tax under this section subject to certain exemption.
Capital gain arising can be short term or long term based on the period of holding. And it is taxable in the year of sale or redemption of the capital asset.
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Long term gain will be taxed at special rates.
Short term gain will be taxed at special rate or slab rate, subject to the type of asset.
Income from other sources:
Income which is not covered in any of the income heads as discussed above is taxable under this head of income. For example:
Dividend from foreign company or deemed dividend, gifts, interest income on investments/securities.
Winning from lotteries/puzzles/games