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CS Executive · Tax Laws and Practice · Basic Concept of Income Tax

Under the Income-tax Act, 2025 (applicable from the June 2027 session), all incomes are classified for charge and computation of total income under how many heads of income, and which of the following is one of them?

There are five heads of income under section 13 of the Income-tax Act, 2025: Salaries, Income from house property, Profits and gains of business or profession, Capital gains, and Income from other sources. So the option naming five heads including Income from other sources is correct.

  1. AFour heads, including Agricultural income
  2. BFive heads, including Income from other sourcesCorrect
  3. CSix heads, including Income from salaries and perquisites separately
  4. DFive heads, including Income from foreign sources

Explanation

Section 13 of the Income-tax Act, 2025 lists five heads: Salaries; Income from house property; Profits and gains of business or profession; Capital gains; and Income from other sources. Agricultural income and foreign-source income are not separate heads, and perquisites fall within Salaries.

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