What Is Income ?

Income is money that a person or a business receives
in return for working, providing a product or service, or
investing capital. A person's income may also derive from
a pension, a government benefit, or a gift.

Types Of income
 
1.Wages
2.Income From Salary
3.Commision
4.Rental Income
5.Intrest
6.Investment
7.Allowance
  .

(1) Wages

A payment usually for money for Labor or services usually
according to contract and on an hourly, daily , or piecework basis.

(a) Piece wages : piece wages are the wages paid according to the
worker to calculate the piece wages, the number of units produced
by the worker are taken into consideration.

(b) Time wages : If the labourer is paid for his services according to
time it is called as time wages.


(2) Income From salary

As per Section 15, Salary consists of the following:

• (Normal Salary): any salary due from an employer or
 former employer to an assessee in the previous year,
whether actually paid or not;  
• (Advance Salary) : any salary paid to him in the previous
year by an employer or a former employer though not due or
before it became due to him.
• (Arrears of Salary) : any arrears of salary paid to him by
employer or former employer, if not charged to income tax for
any earlier previous year.  

Particulars
Basic Salary
Add: +
1. Fees, Commission and Bonus
2. Allowances
3. Perquisites
4. Retirement Benefits
5. Fees, Commission and Bonus
Gross Salary: =
Less: Deductions from Salary (-)
1. Entertainment Allowance u/s 16
2. Professional Tax u/s 16
Net Salary .......

Deduction From Salary Income
The following deductions from salary income
are admissible as per Section 16 of the Income-tax Act. 
(i) Professional/Employment tax levied by the State Govt.
(ii) Entertainment Allowance- Deduction in respect of
this is available to a government employee to the extent
of Rs. 5000/- or 20% of his salary or actual amount received,
whichever is less. 

• It is to be noted that standard deduction of Rs. 50,000/- is
available from salary income w.e.f. 01.04.2019 i.e.
AY 2020- 21 onwards.

       
3. Commission
Some employees earn all or some  of their income through
commission. There are many types of commission pay, 
and employee calculate them differently. Learning about
the different types of commission.
A commission is a payment that an employee make based
on a sale.
some employee earn commission in addition to their base income,
while other employee work only on commission.
Example : If an employee sells a Car for rs. 1500000 get a 2.5%
Commission on per sale.

Commission-based pay is advantageous to employee because
they ultimately  control how much the make.
it does not limit the employees potential to increase their
own income.

Types of Commission Income
Straight commission
Draw against commission
Residual Commission
Bonus commission
Variable commission

(4) Rental Income