Happiness, as defined by Spanish philosopher José Ortega y Gasset, is the precise coincidence between circumstance and vocation. My personal vocation, for example, drove me to teach Hispanic philosophy and literature. My circumstance or surroundings made it possible for me to perform this teaching. And so I experienced happiness. If, on the other hand, the amassing of material wealth constitutes my vocation or inner calling, then a bull market on Wall Street (my circumstances) makes me happy. If my inner calling impels me to seek fame, then a record-breaking crowd who comes to see me perform onstage gives me utter happiness. If love for society defines my inner impulse, then a soup-kitchen for the needy where I may serve soup affords me happiness.
"Happiness is when what you think, what you say, and what you do are in harmony". -Mahatma Gandhi
Is there any better definition for happiness? We need to distinguish between happiness and pleasure. Happiness can be considered as a state of well-being. It is strengthened by satisfaction, peace of mind and comfortability. So happiness may be the harmony between what we are and what we wish to be.
Inner strength of happiness is passionate working. When a person gives his/her total to the work he is doing, realistic and positive outcome will be visible which will have a multiplier effect on happiness giving inner strength to remain happy. However when the efforts do not get the due recognition, there may be adverse effect on happiness.
Beatitude is Latin for happiness or blessedness and it indicates a certain inner contentedness or joy no matter what your life circumstances are. The beatitudes are a list of the qualities and conditions needed to be truly happy and aligned spiritually to obtain the reward for striving quality, true happiness and sense of joy.
I have tried to find a more rigorous background to this question and can add to the valuable answers so far the idea of "positive psychology" (which I didn't know before, thanks for this question, dear Abhijit). Researchers there do not only use effective intervention but also try to understand happiness on a scientific basis.
Adding to the more specific answers of dear Roland and dear Krishnan: as Socrates said the path to happiness is by knowing yourself (self-knowledge) and successfully answering the question "What am I like?"
Happiness is a kind of feeling. It is related to the hormones or some chemical substances in the blood. When a person receives his desire, the Cerebrum will gradually release the hormones into the blood let him feel happy.
So keeping low expectations and low pressure life is good way for happiness life.
To me self satisfaction which I translate as contentedness which makes a person non-jealous and make one love all (society) without malign. But does not mean that one should not try to achieve a higher level.
Good moral character, peace, contentment, self satisfaction, positive attitude, generosity, courage, righteousness, goodwill are the inner strength of happiness.