Income tax department
If you are a taxpayer and are planning to file your income tax return (ITR) for the financial year 2024-25, then you need to understand the five major sources of your income. This is the interest on source salary, property rent from property, property like gold, share or real estate selling, profit from business, and other sources such as fixed deposits (FD). The income of every taxpayer can be from one or more sources, for example, a person can run a small business along with salary and rental income or a businessman can take salary from his company. Before filling ITR, it is important to have correct information about your taxable income. This will help in choosing the right ITR form.
In Mint’s report, CA Pratibha Goyal, Delhi’s Chartered Accountant and PD Gupta & Company’s partner, says that although this is not common, the taxpayer’s income may be from all these five sources. As such, ITR-3 or ITR-4 will have to be used depending on the nuances of the case.
Five major sources of income
Salary- This includes basic salary, allowances, bonuses and other facilities. If your income is only from salary, then you can file returns through ITR-1.
Property income- This includes rental income from your owned property. If you have such income, you can use ITR-1.
Capital Gain- This is a benefit from selling shares, mutual funds or real estate, which can be short -term or long -term. If the capital profit is less than Rs 1.25 lakh, then ITR-1, and if it is more, use ITR-2.
Business or profession This includes self -employment, freelancing or business profits. Themselves fall in this category, freelancer or small businessmen. For this type of income, ITR-4, ITR-5 or ITR-6 will have to be used, which depends on the type of business.
other sources- This category includes interest income, dividends from shares, lottery win and gifts. For example, if you win the reward from a TV show like Coindcx or Bigg Boss, your earnings will come in other sources.