Heads of Income

Heads of Income
Under chapter 4 of Income Tax Act, 1961 (Section 14), income of a person is calculated under various defined heads of income. The total income is first assessed under heads of income and then it is charged for Income Tax as under rules of Income Tax Act. According to Section 14 of Income Tax Act, 1961, there are following heads of income under which total income of a person is calculated:

Heads of Income:

Salary

House Property

Profit in Business/ Profession

Capital gain

Heads of Income: Other Sources

Every type of income comes under a specified heads. But there are few incomes, which don't come under any of following heads:
Salary
House Property
Profit In Business/ Profession
Capital Gains
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So under Section 56(2) of Income Tax Act,1962 all such income comes in this heads of income. There are following incomes which are taxed under this heads
Income coming as a dividend paid by a company to an assessee
Income coming from winning in lottery, crossword puzzles, races, card games, gambling or other such sports
Income coming as an amount received by assessee from his employer as a fund for welfare of employee
Income as an interest on securities
Income coming by letting on hire machinery, plant, furniture, building or other goods Income coming from insurance policy