ITR 2025: What are the five sources of income liable for tax? Details inside
Section 14 of the Income Tax Act, 1961, states that different sources of income must be grouped for tax purposes. The law divides all types of income into five specific categories.
Aimed towards making tax calculation easier and more structured, taxpayers must carry out this step before calculating your income tax liability.
It is also crucial to note that the ITR filing deadline for this year stands at July 31. Failing to pertain to the mentioned deadline would result in interest penalties.
Five heads of income tax:
1. Income through earned salary: Taxable salary comprises basic salary, all allowances, perquisites, and bonuses, among others, which fall under the taxable bracket.
Taxpayers who earning a monthly salary as their sole income should file their income tax return through the ITR-1 form.
2. Rental income from house property: If a citizen owns a property that has been rented out, or sublet, the earned rent is taxable.
Taxpayers who are eligible under this income stream can file their ITR through the ITR-1 form.
3. Income through capital gains: Short and long term capital gains and those that accrue on the sale of shares, mutual funds and real estate, are an income tax eligible stream.
Taxpayers with capital gains lower than ₹1.25 lakh should use ITR-1 and those with higher gains, can use ITR-2, for filing their income tax returns.
4. Income from business or profession: Self-employed individuals, freelancers, small agency owners and those with business incomes or entrepreneurs, fall under this slab.
Taxpayers under this category of income stream should refer to ITR-4, ITR-5 or ITR-6 numbered forms, on the basis of their respective income categories.
5. Income through other sources: Citizens benefitting from interest income from fixed deposits or bonds, share dividends, gifts, rewards from game shows, lucky draws, lottery prizes etc. that exceed ₹50,000, belong under the slab of 'other sources'.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
19 minutes ago
- Mint
Indian shares inch lower as Kotak earnings drag financials, trade deal delay weighs
By Bharath Rajeswaran and Vivek Kumar M (Reuters) -Indian shares inched lower on Monday as weak results from Kotak Mahindra Bank weighed on sentiment, while uncertainty over trade talks with the U.S. added to overall caution. The Nifty 50 fell 0.16% to 24,798.9 points and the BSE Sensex lost 0.2% to 81,325.4 as of 10:03 a.m. IST. The broader small-caps and mid-caps lost 0.3% and 0.2%, respectively. Negotiations between India and the United States remained deadlocked over tariff cuts on agriculture and dairy products, dimming hopes of an interim deal ahead of U.S. President Donald Trump's August 1 deadline. This is in contrast to a framework trade agreement struck between the U.S. and European Union over the weekend, easing fears of a bigger trade war between the two allies, which account for almost a third of global trade. High-weightage financials and private banks lost 0.2% and 1%, respectively, dragged by a 7% fall in Kotak Mahindra Bank after it posted a drop in quarterly profit. The IT index lost 0.5%, with Tata Consultancy Services shedding 1.6% after it announced plans to reduce its workforce by 2% in fiscal year 2026. The Nifty 50 and 30-stock Sensex have logged four consecutive weekly losses due to weak earnings, foreign outflows and uncertainty over the U.S.-India trade deal. "A dull earnings season and the lingering delay in the India-U.S. trade deal have clearly cast a shadow on market sentiment. With valuations still stretched across the board, investors are understandably treading with heightened caution," said G Chokkalingam, founder and head of research at Equinomics Research. Among individual stocks, Mphasis gained 2.4% on posting quarterly results in-line with estimates and on strong deal bookings, which has boosted the IT company's revenue growth outlook. SBI Cards and Payment Services lost 3.7% after missing profit estimates in the June quarter. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Eileen Soreng and Mrigank Dhaniwala)
&w=3840&q=100)
First Post
an hour ago
- First Post
ChatGPT co-creator appointed head of Meta AI Superintelligence Lab
Meta CEO Mark Zuckerberg announced that Shengjia Zhao, co-creator of OpenAI's ChatGPT, will serve as the chief scientist of Meta Superintelligence Labs. The move came months after Meta went on to poach AI talent from competitors read more Meta CEO Mark Zuckerberg announced that Shengjia Zhao, co-creator of OpenAI's ChatGPT, will serve as the chief scientist of Meta Superintelligence Labs. X / @alexandr_wang Facebook co-founder and Meta CEO Mark Zuckerberg announced Shengjia Zhao, co-creator of OpenAI's ChatGPT, as the new chief scientist of Meta Superintelligence Labs. It is pertinent to note that Zhao was one of several strategic hires in Zuckerberg's multi-billion-dollar hiring spree. In the announcement, Zuckerberg said that Zhao's name as the co-founder of Meta Superintelligence Labs and its lead scientist was locked in 'from day one'. 'Now that our recruiting is going well and our team is coming together, we have decided to formalise his leadership role,' he added. STORY CONTINUES BELOW THIS AD The ChatGPT co-creator would directly report to Zuckerberg and Alexandr Wang, the former CEO of Scale AI, who is now Meta's chief AI officer. 'Shengjia has already pioneered several breakthroughs, including a new scaling paradigm,m and distinguished himself as a leader in the field,' the Meta CEO said in a social media post. 'I'm looking forward to working closely with him to advance his scientific vision. The next few years are going to be very exciting!' he concluded. The man behind ChatGPT Apart from creating the renowned AI chatbot, Zhao has played an instrumental role in developing GPT-4, mini models, 4.1, and o3, CNBC reported. In the past, he has also led synthetic data efforts at an AI research company. In a separate post, Wang also celebrated Zhao's inclusion in the team. 'We are excited to announce that @shengjia_zhao will be the Chief Scientist of Meta Superintelligence Labs! Shengjia is a brilliant scientist who most recently pioneered a new scaling paradigm in his research. He will lead our scientific direction for our team," he wrote in a post. We are excited to announce that @shengjia_zhao will be the Chief Scientist of Meta Superintelligence Labs! Shengjia is a brilliant scientist who most recently pioneered a new scaling paradigm in his research. He will lead our scientific direction for our team. Let's go 🚀 — Alexandr Wang (@alexandr_wang) July 25, 2025 The announcement came just months after reports emerged that Meta has spent billions of dollars hiring AI talents from Google, OpenAI, Apple and Anthropic. STORY CONTINUES BELOW THIS AD Apart from this, the tech giant also acquired ScaleAI for a whopping $14 billion and made its CEO Meta's chief AI officer. Zuckerberg made it clear that his company would spend hundreds of billions of dollars on building huge AI data centres in the US. Hence, it will be interesting to see how Meta performs in an already competitive market.
India.com
an hour ago
- India.com
Do you know how much a software engineer earns at Microsoft? Find out each team's earning at this American tech giant
Microsoft CEO Satya Nadella Microsoft Layoffs: American technology giant Microsoft recently decided to lay off nearly 4 percent of its workforce as the company looks to rein in costs amid hefty investments in artificial intelligence infrastructure. The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 9,000 workers. These layoffs are being carried out across nations, and reportedly professionals of all levels of experience are bracing for impact. Microsoft confirmed to Reuters that its gaming division was impacted by the layoffs, although not the majority of the unit, but did not provide further details. A spokesperson for the firm told the BBC: 'We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.' According to a report by Business Insider, based on internal Microsoft documents, employees are being urged to make greater use of AI tools. This strategy enables managers to offer retention bonuses to those contributing to AI-related projects. It has been noted that employees in Microsoft's AI divisions earn higher salaries compared to their counterparts in non-AI roles. Some salary ranges for various roles are as follows: Software Engineer: $82,971-$284,000 Product Manager: $122,800-$250,000 Data Engineering: $144,855-$264,000 Data Science: $121,200-$274,500 Customer Experience Engineering: $126,422-$239,585 Technical Program Management: $120,900-$238,000 Applied Science: $127,200-$261,103 Hardware Engineer: $136,000-$270,641 Cloud Network Engineering: $122,700-$220,716 Research, Applied and Data Science: $85,821-$208,800 Business Analytics: $159,300-$191,580 It is important to note that these figures are based on over 5,400 visa applications processed up to early 2025.
