Updated upto A.Y. 2019-20
Heads of Income – Sec. 14
All income of a person shall be classified under the following five heads:
- Income from house property;
- Profits and gains of business or profession;
- Capital gains;
- Income from other sources
There are only five heads of income, but the assessee may generate the income from various sources.
In the same head of income, there may be various sources of income.
E.g. under the head ‘Income from house property’, there may be two or more house properties and each house property shall be termed as a source of income.
The source of income decides under which head (among the five heads) income shall be taxable.
Gross Total Income & Total Income
As per sec. 80B(5), Gross total income is the aggregate of income under all the five heads of income after adjusting the set-off & carry forward of losses. Deductions under chapter VIA is provided from GTI, to arrive at Total income or taxable income.
Computation of Total Income for the A.Y.___
|Income from house property||***|
|Profits and gains of business or profession||***|
|Income from other sources||***|
|Gross Total Income (GTI)||***|
|Less: Deduction u/s 80C to 80U||***|
|Total Income (TI)||***|
Rounding Off of Total Income [Sec. 288A]
The total income so computed will have to be rounded off to the nearest multiple of ₹ 10, i.e., if the last figure in the ‘rupee element’ is ₹ 5 or more, it should be rounded off to the next higher amount, which is a multiple of ₹ 10. The ‘paise’ element should be ignored.
Thus, if the total income works out to ₹ 41,645, it should be rounded off to ₹ 41,650, but if it works out to ₹ 41,644.98, it should be rounded off to ₹ 41,640.