The document discusses the definition and features of salary as a form of income. Some key points include: 1) A salary is a form of payment from an employer to an employee that is often specified in an employment contract and paid periodically, rather than based on individual jobs or hours. 2) To be considered taxable salary, the income must be received from a present or past employer, indicating an employer-employee relationship. 3) Salary includes pension payments from a past employer to an employee after their service has ended.

1. A salary is a form of payment from an
employer to an employee ,Which may be
specified in an employment contract. It is paid
instructed with piece wages , Where each job ,
hour or other unit is separately , rather than on
periodic basis….in accounting salaries recorded in
payroll accounts.

2.  The main features of the income taxable as salary are
as follows ;
 1
 The amount must be received by an employee from his
present or past employer . It is necessary that
relationship of the employer and the employee should
exist .if such a relationship is not present , the amount
cannot be taxed under this head.

3.  Income is paid by government , local authority , company
, public body , association , or private employer in Pakistan.
Income received from foreign government is not taxed
under section 12.
 3
income is due to employee during or after service it means that pension
paid by past employer to employee after service is include in salary

4.  ‘’ Employee in case of company includes the managing
director , director or an agent of the company .’’
5
‘’ Salary earned is taxable whether received or not.
‘’

5.  Salary received is taxable whether earned or
not
7
 Arrears of salary will be taxable in the year of
receipt, if these have not been taxed In the
year in which the amount was earned .