What is salary and feature of salary

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 .