Feb. 13, 2021, 10:57 p.m.
Salary in simple terms means any amount paid by employer to his employees in lieu of services rendered by them.
Section 17(1) of Income Tax Act 1961 defines the term "Salary" which include the following monetary as well as non-monetary payments :
(a)Wages
(b)Annuity or Pension
(c)Any Gratuity
(d)Any Fees, Commission, perquisite or profits in lieu of or in addition to any salary or wages
(e)Advance of Salary
(f)Leave Encashment
(g)Employer contribution to provident fund in excess of 12% of salary
(h) Contribution by Central Government or any other employer to Employees Pension Account as referred in Sec. 80CCD
Salary in simple terms means any amount paid by employer to his employees in lieu of services rendered by them.
Section 17(1) of Income Tax Act 1961 defines the term "Salary" which include the following monetary as well as non-monetary payments :
(a)Wages
(b)Annuity or Pension
(c)Any Gratuity
(d)Any Fees, Commission, perquisite or profits in lieu of or in addition to any salary or wages
(e)Advance of Salary
(f)Leave Encashment
(g)Employer contribution to provident fund in excess of 12% of salary
(h) Contribution by Central Government or any other employer to Employees Pension Account as referred in Sec. 80CCD
Income under the head Salary is taxable is u/s 15 of Income Tax Act 1961 :
(a) On "due" or "receipt basis" whichever is earlier.
(b)Any Arrears of Salary received are fully taxable in the year of receipt subject to relief u/s 89(1).
“Perquisite” is defined in the section 17(2) of the Income tax Act as including:
(i) Value of rent-free/concessional rent accommodation provided by the employer.
(ii) Any sum paid by employer in respect of an obligation which was actually payable by the assessee.
(iii) Value of any benefit/amenity granted free or at concessional rate to specified employees etc.
(iv) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assesssee.
(v) The amount of any contribution to an approved superannuation fund by the exployer in respect of the assessee, to the extent it exceeds one lakh rupees; and
(vi) the value of any other fringe benefit or amenity as may be prescribed.