Head-Wise Opinion

  • Income from Salary
  • Income from House property
  • Income from Business or Profession
  • Income from Capital Gains
  • Income from other sources
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As per the Income tax Act, 1961, all income shall, for the purposes of charge of income-tax and computation of total income, be classified under the following heads of income :

  • Income from Salary
  • Income from House property
  • Income from Business or Profession
  • Income from Capital Gains
  • Income from other sources
Income from Salary
The following income shall be chargeable to income-tax under the head "Salaries"—
  • Any salary due from an employer or a former employer in the previous year, whether paid or not (CURRENT YEAR SALARY )
  • Any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him (ADVANCE SALARY)
  • Any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year (ARREARS )

Opinion can be sought as regards to taxability of "Salary", "Perquisite" ,"Profits in lieu of salary" and deductions available under the head "Salary" in the Income tax Act, 1961.

Income from House Property
The following income shall be chargeable to income-tax under the head "House property "—
  • The annual value of property consisting of any buildings or lands appurtenant thereto of which the person is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax.

Opinion can be sought as regards to taxability of income from house property , income of co owned house property, Arrears of rent, Unrealized Rent, deemed rental provisions and deductions available from Income from House Property.

Income from Business or Profession

The scope of income includable under the head income from business or profession is very wide. In general the profits and gains of any business or profession which was carried on by any person at any time during the previous year is chargeable as Income from business / profession.

Opinion can be sought as regards to legitimate tax planning by minimizing the tax expenses and also whether to pay tax on particular income or not and whether to claim expenses / deduction or not as there are different situations when it prima facie seems an income as non-taxable but the Income tax authorities may treat it as taxable and vice versa. Similarly certain expense / deductions prima facie seems as allowable expenses / deduction but the Income tax authorities may treat it as not allowable and vice versa. Thus, in order to avoid litigations one should must get consultancy related to Income / expenses from Business and Professional activities carried out during the year.

Income from Capital Gains
The following income shall be chargeable to income-tax under the head "Capital Gains "—
  • Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place. However, there are various exemptions that the person can availed if conditions are complied with, in order to get exemption of Capital gain earned.

Opinion can be sought as regards to legitimate tax planning by minimizing the tax expenses , the fact that whether the relevant assets is a Capital asset or not, whether the transaction executed or to be executed results in capital gain in the hands of the person and to what extent and also as regards to benefits / exemption available that can be availed after complying the necessary / prescribed conditions in order to reduce the tax burden or to get rid of tax on Capital gain earned.

Income from Other Sources
The following income shall be chargeable to income-tax under the head "Income from Other sources"—
  • Income of every kind which is not to be excluded from the total income under the Income tax Act, 1961 shall be chargeable to income-tax under the head "Income from other sources", if it is not chargeable to income-tax under any of the heads specified above. Other Sources Income mainly includes Interest Incomes, Income from Gift, Deemed income from various types of sale transactions without adequate consideration.

Opinion can be sought as regards to legitimate tax planning by minimizing the tax expenses , the fact that whether or not any particular transaction results in arising of any income tax payable by the person and deductions available from Income from Other sources.