1. The First Head of Income is
Income From Salary.
Provision Relating to Salary included
section 15 to 17 of Income Tax Act 1961
2. Definition of the Head Salary
Any Remuneration received by an
employee in consideration of service
rendered to his employer is Called
Salary.
Salary includes monetary value of
benefits and facilities provided by an
employer also.
3. As per section 15 the following incomes are
taxable under head salaries
1. Any salary amount due to assesses it may be
from former employer or present employer in
previous year.
2. Salary paid or allowed to assesses in the previous
year by or on behalf of an employer, or former
employer though not due or before it becomes
due to him.
3. Any arrear of salary paid or allowed in pervious
year by employer if not taxed for any previous
year
4. According to Section 17, Receipts Included under
salaries
a. Wages
b. Annuity and pension
c. Gratuity
d. Fees, commission, Perquisites,
Profit in lieu of Salary, In addition to any salary or
wages
e. Any advance of salary
f. Leave salary
g. Contribution and interest to PF
h. Remuneration for additional duties
5. Under Section 16 the following deduction are
allowed in Salary Income
EntertainmentAllowance is deductible for only
government employees u/s 16 ii
Standard deduction Rs. 50000 or Salary income
which ever less in deductible u/s16(ia)
Professional tax
6. Particulars Rs.
Basic Salary
Bonus
Commission
Allowance
a. Fully taxable
b. Partly taxable
Perquisites
Profit in lieu of salary
Arrears of Salary
Advance Salary
Retirement benefits
a. Gratuity
b. Pension
c. Leave encashment
xxxx
xxxx
xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
Xxxx
GROSS SALARY Xxxx
Less: Deduction U/S 16
Standard Deduction 16(1a)
i. Entertainment Allowance16(ii)
ii. Professional Tax16(iii)
NET SALARY
Xxxx
Xxxx
Xxxx
XXXX
Format of
computation
of Taxable
Salary
