1. Income from Salary

This includes all types of payments received by an employee from an employer, such as:

• Basic salary

• Allowances (house rent, medical, conveyance, etc.)

• Bonuses, commissions, and benefits

• Perks like company-provided car or accommodation

2. Income from Business

Any income earned through trade, profession, or business activity falls under this head. Examples include:

• Profits from sole proprietorships or partnerships

• Professional income (lawyers, doctors, consultants, freelancers)

• Income from manufacturing, services, or trading activities

3. Income from Property

This refers to income earned from letting out immovable property, such as:

• Rental income from houses, flats, shops, or commercial buildings

• Advance rent or security forfeited

• Any other amount received in relation to the lease of property

4. Capital Gains on Immovable Property

Capital gain arises when a person sells a plot, house, or building at a price higher than the purchase cost. Tax is imposed on the profit earned from disposal of immovable property.

Factors affecting tax include:

• Holding period (short-term vs. long-term)

• Fair market value determined by FBR

• Exemptions in certain cases (e.g., first house for personal use)

5. Income from Other Sources

This is a residual category covering income not included in the above heads. Examples are:

• Dividend income

• Prize bonds or lottery winnings

• Interest or profit on debt (bank deposits, savings accounts)

• Royalty or technical service fees