Cash or Kind: Income may be received in cash or kind. When the income is received in kind, its valuation will be made in accordance with the rules prescribed in the Income-tax Rules, 1962.
Receipt basis/Accrual basis Income arises either on receipt basis or on accrual basis. It may accrue to a taxpayer without its actual receipt. The income in some cases is deemed to accrue or arise to a person without its actual accrual or receipt. Income accrues where the right to receive arises.
Legal or Illegal Source: The income-tax law does not make any distinction between incomes accrued or arisen from a legal source and income tainted with illegality.
Temporary/Permanent: There is no difference between temporary and permanent income under the Act. Even temporary income is taxable same as permanent income.
Lump sum/Installments Income whether received in lump sum or in installments is liable to tax. For example: arrears of salary or bonus received in lump sum is income and charged to tax as salary.
