Basics Of Income Tax

Basics Of Income Tax

Basics of Income Tax Definition of Income Under the Income Tax Act Under the Income Tax Act of India, "income" is defined broadly and encompasses various sources of earnings or receipts. It is an essential term for the purpose of taxation and lays the foundation for calculating tax liabilities. Definition of Income (Section 2(24) of the Income Tax Act, 1961) Section 2(24) of the Income Tax Act defines "income" to include: Income from Salaries : This includes all earnings derived from employment, including wages, bonuses, allowances, and benefits. Income from Business or Profession : Profits or gains derived from any business or profession, including trade, commerce, manufacturing, etc. Income from House Property : Any income earned from owning property, including rent and other receipts from immovable property. Capital Gains : The profit or gain arising from the sale or transfer of capital assets, like land, buildings, stocks, and bonds. Income from Other Sources : A broad category that includes income not specifically covered under other heads, such as interest on savings accounts, dividends, lottery winnings, etc. Key Components of Income The Act includes several other forms of income under this definition, which can be categorized into: Monetary Income : This

Updated July 15, 2026