Election 2014
SENSEX NIFTY

Salaries

What is salary and what does salary include?

WHAT IS SALARY

Salary is the remuneration received by or accruing to an individual, periodically, for service rendered as a result of an express or implied contract. The actual receipt of salary in the previous year is not material as far as its taxability is concerned. The existence of employer-employee relationship is the sine-qua-non for taxing a particular receipt under the head salaries. For instance, the salary received by a partner from his partnership firm carrying on a business is not chargeable as Salaries but as Profits & Gains from Business or Profession. Similarly, salary received by a person as MP or MLA is taxable as Income from other sources, but if a person received salary as Minister of State/ Central Government, the same shall be charged to tax under the head Salaries. Pension received by an assessee from his former employer is taxable as Salaries whereas pension received on his death by members of his family (Family Pension) is taxed as Income from other sources.

WHAT DOES SALARY INCLUDE

Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of Salaries including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to recognized provident fund (vii) Contribution of employer to a Recognised Provident Fund in excess of the prescribed limit (viii) Leave Encashment (ix) Compensation as a result of variation in Service contract etc. (x) Contribution made by the Central.

Source: Income Tax Department

Income from House Property

Business

Capital Gains

Income from Other Sources

Wealth Tax

TDS

PAN

General

Taxable Income

Return of income

Assessment

Due dates for filing tax returns

Deductions

NRIs

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.