Heads Of Income

Tuesday, December 10, 2013

HEADS OF INCOME


      Income profits and gains under the ordinance are taxable under the following heads;
1)Salaries                                             (Section 16)
2)Interest on Securities                         (Section 17) 
3)Income from property                       (Section 18) 
4)profits and gains of business,             
  profession or vocation                         (Section 22)
5)Capital gain.                                       (Section 27)
6)Income From other sources                (Section 30)
   

           The fifth head is a general head and income not covered under any of the other is taxed under this head . Bonus shares issued are taxed in the heads of the company.

           Income under different heads is not taxed separately. Therefore , assessment of the whole of income and as such income under the different heads is taxed at the same time and tax is computed on the total income and not income under each head separately . The logic behind the classification of income in different heads is to have different machinery for computing income under each head.

No comments:

Post a Comment

 

LAW OF INCOME TAX

Tracker

Web Analytics