Question

Distinguish between heads of income and sources of income

Answer 1

Heads of income are the ways to classify the income or profits earned by a person during a taxable year.

The five heads of income as follows -

Income from salaries
Income from house property
Profits And gains from business or profession
Capital Gains
Income from other sources



Sources of income are monetary sources from which income can be earned by an individual or a business

Sources of income for an individual maybe salary, Commission, interest etc.

Sources of income for a business maybe profits, return on Investments, grants from the government.

Answer 2

Differences between source of income and heads of income...??