Explanation
Section 14 of IT Act 2025 (§14 in old Act listed heads) classifies all income under five mutually exclusive heads. Head 1 — Salaries (§14–19 in IT Act 2025 / §15–17 in 1961): salary, wages, pension, perquisites, profits in lieu of salary. Head 2 — House Property (§22–26): annual value of any property. Head 3 — PGBP (§28–68): all business and professional income. Head 4 — Capital Gains (§70–94): profit on transfer of capital assets. Head 5 — Other Sources (§56): residual head — dividends, interest (not covered by other heads), gifts >₹50,000, lottery winnings, crypto/VDA income, online gaming winnings. Income must be classified under the correct head — wrong classification is an error. Verify on the income-tax portal before filing.