Heads of Income classification determines taxation of salary, property, business, capital gains and residual receipts. The Heads of Income classify taxable receipts: Income from Salaries arises only from an employer-employee relationship and includes pay, allowances, perquisites and retirement benefits; Income from House Property taxes actual or deemed rent with specified deductions; Profits and Gains of Business or Profession taxes net business/professional surplus after allowable expenses; Income from Capital Gains taxes transfer gains with long term/short term distinction, indexation and exclusions; and Income from Other Sources covers residual receipts such as interest, dividends and gambling winnings.