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Income from salary all - nmvgvfg
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Course
Introduction to business (MBA1)
90 Documents
Students shared 90 documents in this course
Academic year: 2023/2024
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Income under the head Salaries
1. Salary is defined to include:
a) Wages
b) Annuity
c) Pension
d) Gratuity
e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or
Wages
f) Advance of Salary
g) Leave Encashment
h) Annual accretion to the balance of Recognised Provident Fund
i) Transferred balance in Recognised Provident Fund
j) Contribution by Central Government or any other employer to Employees
Pension Account as referred in 80CCD
2. Points to consider:
a) Salary income is chargeable to tax on “due basis” or “receipt basis”
whichever is earlier.
b) Existence of relationship of employer and employee is must between the
payer and payee to tax the income under this head.
c) Income from salary taxable during the year shall consists of following:
Salary due from employer (including former employer) to taxpayer during the
previous year, whether paid or not;
Salary paid by employer (including former employer) to taxpayer during the
previous year before it became due;
Arrear of salary paid by the employer (including former employer) to taxpayer
during the previous year, if not charged to tax in any earlier year;
Exceptions – Remuneration, bonus or commission received by a partner from
the firm is not taxable under the head Salaries rather it would be taxable under
the head business or profession.
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Income from salary all - nmvgvfg
Course: Introduction to business (MBA1)
90 Documents
Students shared 90 documents in this course
University: Thapar Institute of Engineering and Technology
Was this document helpful?
Income under the head Salaries
1. Salary is defined to include:
a) Wages
b) Annuity
c) Pension
d) Gratuity
e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or
Wages
f) Advance of Salary
g) Leave Encashment
h) Annual accretion to the balance of Recognised Provident Fund
i) Transferred balance in Recognised Provident Fund
j) Contribution by Central Government or any other employer to Employees
Pension Account as referred in 80CCD
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