Yes, that’s true! For the purpose of filing taxes, the definition of taxable income includes many more elements, in addition to your salary.
Let’s understand the concept of taxable income better. For starters, a person can have a total of 5 sources of income as per the income tax laws. These sources of income include:
1. Your monthly salary
2. Rental income from your house property
3. Profits from long-term investments
4. Income from business or profession
5. Other sources such as gifts and interest from fixed deposits
If you are filing taxes yourself or with your CA, you need to factor all the above heads first, to arrive at your total taxable income. Only then you will able to arrive at your total taxes payable at the end of the year or the refund you’re eligible for, if excess tax has been paid.
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Updated Date: Aug 14, 2019 13:53:04 IST