Create more than one source of income for a safe and secure financial future
Income from salary: This includes basic salary or wages, annuity or pension, gratuity, advance of salary, leave encashment, commission, and perquisites in lieu of or in addition to salary and retirement benefits.
Allowances: This is a fixed monetary amount paid by the employer to the employee for expenses related to office work. Allowances are generally included in the salary and taxed unless there are exemptions available.
Earning from property: Money earned from any residential or commercial property which is let out and earns rental income.
Profits from business: Gains through a profession or business also acts as an earnings stream, which could be variable, depending on the nature of business or profession.
Capital gains: Profit or gain arising from transfer of capital asset such as sale of property and investments in stocks and mutual funds. These can be under two subheads—short-term capital gains or long term capital gains, depending on the duration of holding on to the assets.
Interest from deposits: This is the interest income that you earn from the savings deposits in the bank or any such form of savings.
Gift and rewards: You may receive money in the form of gifts from friends and relatives, which could also be a source of earning. It could also be a reward at work.
Other sources: These could include lottery, winnings from gambling or any such form of activity, which cannot fall under any of the above sources.