Heads of Income, Surcharge & Cess

Heads of Income, Surcharge & Cess Dr. Shyam Kumar Associate Professor IIMT College of Management, Greater Noida

Heads of Income As per Income tax, section 14 classifies income under five heads: i. Income from salaries ii. Income from House Property iii. Profits and gains of business and profession iv. Capital Gains v. Income from other sources

Tax Rates The Income is taxed at the rates prescribed by the relevant Finance Act. The tax levied on the basis of a slab system where different tax rates have been directed for the different slab. In India, there are three categories of individual taxpayers: i. An individual below the age of 60 years, ii. A senior citizen above the age of 60 years, but below the age of 80 years, iii. A super senior citizen above 80 years of age.

The tax slab varies according to the different persons.

Surcharge & Education Cess ď ľ The

Surcharge is commonly known as Tax on Tax. It is an additional tax levied on the taxpayers on a special group of people. It is an additional tax liability levied on the person having more income than prescribed.

ď ľ The

amount of income tax shall be increased by an Education Cess on Income Tax.

GROSS TOTAL INCOME (GTI) & TOTAL INCOME



U/s 14 the term “Gross Total Income” [ GTI ] means aggregate of incomes computed under the Five heads.



losses are adjusted and the resultant figure is called Gross Total Income.

From Gross Total Income , Deductions u/s 80 are allowed. The resultant figure is called “Total Income “ on which Rates of Taxes are applied

 Exempted Incomes ď ľ

These incomes do not from part of total income either fully or partially . Hence, No Tax is payable on such incomes. These incomes are given u/s 10(1) to 10(32) of the Act.

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