The document provides a comprehensive overview of salary computation and taxability under the Indian Income Tax Act. It defines salary and outlines what types of payments are included as salary for tax purposes. It discusses the tax treatment of various allowances that may be received as part of compensation, categorizing them as fully taxable, partially exempt or fully exempt. The document also provides an example calculation of gross salary for an individual receiving various payments and allowances. The summary covers the key aspects around definitions, tax treatment of common allowances, and includes an example calculation.
1. Allowances can be fully exempted, fully taxable, or partially taxable depending on the type of allowance. House Rent Allowance is partially taxable with an exempted amount based on rent paid, salary, and location.
2. Perquisites include non-monetary benefits provided by employers like rent-free housing, cars, food, gifts, etc. Some perquisites are fully exempted from tax while others are fully or partially taxable depending on employee type and conditions.
3. For specified employees like directors, perquisites related to rent-free housing, cars, domestic servants are fully taxable based on prescribed valuation methods even if used for official purposes. Perquisites are valued
The document discusses various aspects of taxation related to salaries in India such as taxation of retrenchment compensation, provident funds, perquisites, and more.
It summarizes that retrenchment compensation up to Rs. 500,000 is tax exempt. For provident funds, statutory and recognized funds provide various tax exemptions while payments from unrecognized funds are partially taxable. Perquisites are taxable benefits provided in addition to salary, and some like rent-free housing are taxable for all employees while others only for specified employees.
The document also covers topics like voluntary retirement schemes, superannuation funds, health insurance premiums paid by employers, and various tax exemptions for allowances like education, food
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
This document discusses various aspects of salary income under the Indian Income Tax Act. It defines salary and the principles for determining when salary is taxable. It explains the tax treatment of different types of salaries like basic salary, fees, commission, bonus, pension, etc. It also discusses exempted, partially exempted and taxable allowances as well as exempted and taxable perquisites. The document provides details on valuation of perquisites like accommodation and car facilities. It covers provisions related to provident funds like statutory PF, recognized PF and unrecognized PF. It concludes with deductions that can be claimed from gross salary income.
Employee allowances - compensation management - Manu Melwin Joymanumelwin
Allowance is a sum of money paid regularly to a person, typically to meet specified needs or expenses. Allowances are generally calculated on basic salary.
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
Different types of allowances paid to employees are discussed. The key allowances mentioned include Dearness Allowance, which is calculated as a percentage of basic salary to offset inflation, House Rent Allowance to help cover rental costs, and Conveyance Allowance for transportation expenses. Other allowances mentioned are City Compensatory Allowance, Foreign Allowance, Children Education Allowance, and Medical Allowance. The tax treatment of each allowance is also briefly covered.
The document discusses the taxation of salaries under the Indian Income Tax Act of 1961. It defines what constitutes a salary and examines the relationship between employers and employees. It also outlines what qualifies as taxable salary components according to the Act, including basic salary, allowances, bonuses, retirement benefits, and perquisites.
1. Allowances can be fully exempted, fully taxable, or partially taxable depending on the type of allowance. House Rent Allowance is partially taxable with an exempted amount based on rent paid, salary, and location.
2. Perquisites include non-monetary benefits provided by employers like rent-free housing, cars, food, gifts, etc. Some perquisites are fully exempted from tax while others are fully or partially taxable depending on employee type and conditions.
3. For specified employees like directors, perquisites related to rent-free housing, cars, domestic servants are fully taxable based on prescribed valuation methods even if used for official purposes. Perquisites are valued
The document discusses various aspects of taxation related to salaries in India such as taxation of retrenchment compensation, provident funds, perquisites, and more.
It summarizes that retrenchment compensation up to Rs. 500,000 is tax exempt. For provident funds, statutory and recognized funds provide various tax exemptions while payments from unrecognized funds are partially taxable. Perquisites are taxable benefits provided in addition to salary, and some like rent-free housing are taxable for all employees while others only for specified employees.
The document also covers topics like voluntary retirement schemes, superannuation funds, health insurance premiums paid by employers, and various tax exemptions for allowances like education, food
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
This document discusses various aspects of salary income under the Indian Income Tax Act. It defines salary and the principles for determining when salary is taxable. It explains the tax treatment of different types of salaries like basic salary, fees, commission, bonus, pension, etc. It also discusses exempted, partially exempted and taxable allowances as well as exempted and taxable perquisites. The document provides details on valuation of perquisites like accommodation and car facilities. It covers provisions related to provident funds like statutory PF, recognized PF and unrecognized PF. It concludes with deductions that can be claimed from gross salary income.
Employee allowances - compensation management - Manu Melwin Joymanumelwin
Allowance is a sum of money paid regularly to a person, typically to meet specified needs or expenses. Allowances are generally calculated on basic salary.
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
Different types of allowances paid to employees are discussed. The key allowances mentioned include Dearness Allowance, which is calculated as a percentage of basic salary to offset inflation, House Rent Allowance to help cover rental costs, and Conveyance Allowance for transportation expenses. Other allowances mentioned are City Compensatory Allowance, Foreign Allowance, Children Education Allowance, and Medical Allowance. The tax treatment of each allowance is also briefly covered.
The document discusses the taxation of salaries under the Indian Income Tax Act of 1961. It defines what constitutes a salary and examines the relationship between employers and employees. It also outlines what qualifies as taxable salary components according to the Act, including basic salary, allowances, bonuses, retirement benefits, and perquisites.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
This document discusses income from salary under section 12 of Pakistan's income tax ordinance. It defines salary as fixed monthly remuneration and outlines various features and scope of salary income. It also describes how perquisites, allowances, benefits and various facilities provided by employers like accommodation, conveyance, medical expenses, loans etc. are treated for tax purposes. The document further discusses provident funds and special tax rebates for senior citizens.
The document defines perquisites as any non-cash benefits provided by an employer to employees in addition to a cash salary. Perquisites are also known as fringe benefits and can include employer-provided housing, cars, health insurance, club memberships, and other assets or services. The document outlines what perquisites are taxable in India, including rent-free housing, cars, interest-free loans, and more. It provides guidance on how to calculate taxable amounts for different perquisites such as housing and vehicle usage. Certain perquisites like medical reimbursements up to 15,000 rupees are fully exempted from tax.
This document summarizes the taxation of various forms of salary income and perquisites in India under the Income Tax Act of 1961. It discusses the tax treatment of advance salary, arrears salary, bonus, commission and various allowances. It also provides details on the valuation and taxability of rent-free accommodations, interest-free loans, use of moveable assets, medical benefits and other perquisites.
Ppt on salary income [compatibility mode]NIHITSHIROYA
This document discusses income tax rates, deductions, and allowances for salary income in India for the fiscal year 2013-2014. It outlines the tax rates for different levels of individual income. It also describes various allowances that are exempt from tax, such as transport, children's education, and house rent allowances. The document explains how perquisites like rent-free accommodation and use of employer's vehicles or loans are taxed. Medical reimbursements by employers are also addressed.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
This document discusses different types of allowances provided to employees and their tax treatment under Indian income tax law. It categorizes allowances into three types: fully exempted, fully taxable, and partially taxable allowances. Fully exempted allowances include those received by government employees posted abroad and allowances of high court and supreme court judges. Fully taxable allowances include dearness allowance and entertainment allowance of non-government employees. Partially taxable allowances include house rent allowance, travel allowance, and education allowance, with the exemption amount depending on actual expenditure or specified limits. Detailed calculations are provided for determining the taxable portion of house rent allowance and entertainment allowance.
The Dearness Allowance is a cost of living adjustment allowance paid to government employees, public sector employees, and pensioners in India to mitigate the impact of inflation. It is calculated as a percentage of the basic salary or pension that increases along with rises in the consumer price index. The Dearness Allowance was introduced after World War 2 and has been revised over time by various pay commissions to account for inflation and be paid out twice yearly.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
salaries, income from salaries, taxable salaries, employer, employee, advnace salary, arrears of salary, bonus, tds, tax deducted at source,
profit in lieu of salary, dearness allowance, allownaces, provident fund, perquisites, medical treatment, entertainment allowance,
professional tax, tax on employment,
Income From Salary Problems,Theory And Solutions New 2008 09 Assessment YearAugustin Bangalore
The document provides information about income from salary including concepts, theories, problems and solutions related to computing taxable income from salary under the Indian Income Tax Act. It discusses various types of salaries and allowances that are taxable or exempt. It also contains examples of computing total income and tax liability for individuals from salary income along with explanations.
The document discusses various provisions related to income from salaries under the Income Tax Act. It provides definitions and key aspects related to salaries such as the charging section, place of accrual and taxability of various allowances.
Allowances are discussed in detail and classified into categories such as house rent allowance, specified allowances, entertainment allowance and fully taxable allowances. Exemption limits and calculation methods for house rent allowance are provided. Specified allowances that are exempt up to the amount spent or up to specified limits are outlined.
Retirement benefits, deductions and the overall framework for computation of income from salaries are summarized at a high level.
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
- The document discusses various types of income that are taxed as salary under the Income Tax Act, including regular salary, bonuses, commissions, pensions, gratuity, and leave encashment.
- It provides details on what is considered salary and the tax treatment of items like leave encashment, gratuity, and pensions for government employees versus non-government employees.
- Examples are given to illustrate how to calculate the taxable and non-taxable portions of retirement benefits like gratuity and leave encashment received by employees.
TK.3,000
individual
Maximum tax for any
Individual: TK.1,00,000
individual
Husband and wife: TK.2,00,000
Tax Rebate:
- 10% of tax payable or TK.10,000 whichever is lower for taxpayer who pays tax through
bank.
- 15% of tax payable or TK.15,000 whichever is lower for taxpayer who pays tax through
bank and has no other source of income except salary.
- 20% of tax payable or TK.20,000 whichever is lower for senior citizen of 65 years or above
who pays tax through bank
The document discusses taxation of salaries for employees. It notes that income from salaries includes basic pay, dearness allowance, commissions, bonuses, taxable allowances, perquisites, leave encashment, and contributions to retirement funds. It outlines the key allowances given to employees and the tax treatment of house rent allowance, special allowances as per section 10(14), and fully taxable allowances. The document provides guidance on calculating income from salaries and the exemptions available.
1. The document discusses the taxation of income from salary under the Indian Income Tax Act of 1961.
2. It defines salary broadly to include wages, pension, gratuity, allowances, perquisites, and other payments in lieu of or in addition to salary received from an employer.
3. The key aspects covered are the characteristics of salary income, its computation by adding various salary components and deducting allowances, and the basis of its chargeability for taxation.
An allowance is additional compensation provided by an employer beyond an employee's regular salary. Allowances can be categorized as taxable, partly taxable, or non-taxable. Taxable allowances include dearness allowance, entertainment allowance, and overtime allowance. Partly taxable allowances include house rent allowance, medical allowance, and conveyance allowance. Non-taxable allowances are those provided to government servants serving abroad and allowances for judges.
This document discusses various aspects of salary income taxation in India. It defines salary and outlines what is included in salary such as wages, commission, allowances, perquisites, etc. It discusses the taxation treatment of various allowances as fully taxable, fully exempted or partially exempted. It also explains the valuation of perquisites provided by employers such as rent-free accommodation, use of cars, interest-free loans, medical reimbursements and more. The document provides detailed guidelines on calculating the taxable value of such perks.
This document summarizes provisions related to taxation of salary income in India. It defines key terms related to salary such as basic salary, allowances, perquisites, and retirement benefits. It provides examples of allowances that are fully taxable, fully exempted, and partly taxable. The document also contains examples showing calculations of taxable salary income based on various components of compensation received by employees.
Tax Fact 2013/14 provides you information on income tax provisions of Nepal applicable for year 2013/14, with a general explanation of income heads, when tax is charged, residence and source concept, Withholding tax rates, and overall tax process.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
This document discusses income from salary under section 12 of Pakistan's income tax ordinance. It defines salary as fixed monthly remuneration and outlines various features and scope of salary income. It also describes how perquisites, allowances, benefits and various facilities provided by employers like accommodation, conveyance, medical expenses, loans etc. are treated for tax purposes. The document further discusses provident funds and special tax rebates for senior citizens.
The document defines perquisites as any non-cash benefits provided by an employer to employees in addition to a cash salary. Perquisites are also known as fringe benefits and can include employer-provided housing, cars, health insurance, club memberships, and other assets or services. The document outlines what perquisites are taxable in India, including rent-free housing, cars, interest-free loans, and more. It provides guidance on how to calculate taxable amounts for different perquisites such as housing and vehicle usage. Certain perquisites like medical reimbursements up to 15,000 rupees are fully exempted from tax.
This document summarizes the taxation of various forms of salary income and perquisites in India under the Income Tax Act of 1961. It discusses the tax treatment of advance salary, arrears salary, bonus, commission and various allowances. It also provides details on the valuation and taxability of rent-free accommodations, interest-free loans, use of moveable assets, medical benefits and other perquisites.
Ppt on salary income [compatibility mode]NIHITSHIROYA
This document discusses income tax rates, deductions, and allowances for salary income in India for the fiscal year 2013-2014. It outlines the tax rates for different levels of individual income. It also describes various allowances that are exempt from tax, such as transport, children's education, and house rent allowances. The document explains how perquisites like rent-free accommodation and use of employer's vehicles or loans are taxed. Medical reimbursements by employers are also addressed.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
This document discusses different types of allowances provided to employees and their tax treatment under Indian income tax law. It categorizes allowances into three types: fully exempted, fully taxable, and partially taxable allowances. Fully exempted allowances include those received by government employees posted abroad and allowances of high court and supreme court judges. Fully taxable allowances include dearness allowance and entertainment allowance of non-government employees. Partially taxable allowances include house rent allowance, travel allowance, and education allowance, with the exemption amount depending on actual expenditure or specified limits. Detailed calculations are provided for determining the taxable portion of house rent allowance and entertainment allowance.
The Dearness Allowance is a cost of living adjustment allowance paid to government employees, public sector employees, and pensioners in India to mitigate the impact of inflation. It is calculated as a percentage of the basic salary or pension that increases along with rises in the consumer price index. The Dearness Allowance was introduced after World War 2 and has been revised over time by various pay commissions to account for inflation and be paid out twice yearly.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
salaries, income from salaries, taxable salaries, employer, employee, advnace salary, arrears of salary, bonus, tds, tax deducted at source,
profit in lieu of salary, dearness allowance, allownaces, provident fund, perquisites, medical treatment, entertainment allowance,
professional tax, tax on employment,
Income From Salary Problems,Theory And Solutions New 2008 09 Assessment YearAugustin Bangalore
The document provides information about income from salary including concepts, theories, problems and solutions related to computing taxable income from salary under the Indian Income Tax Act. It discusses various types of salaries and allowances that are taxable or exempt. It also contains examples of computing total income and tax liability for individuals from salary income along with explanations.
The document discusses various provisions related to income from salaries under the Income Tax Act. It provides definitions and key aspects related to salaries such as the charging section, place of accrual and taxability of various allowances.
Allowances are discussed in detail and classified into categories such as house rent allowance, specified allowances, entertainment allowance and fully taxable allowances. Exemption limits and calculation methods for house rent allowance are provided. Specified allowances that are exempt up to the amount spent or up to specified limits are outlined.
Retirement benefits, deductions and the overall framework for computation of income from salaries are summarized at a high level.
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
- The document discusses various types of income that are taxed as salary under the Income Tax Act, including regular salary, bonuses, commissions, pensions, gratuity, and leave encashment.
- It provides details on what is considered salary and the tax treatment of items like leave encashment, gratuity, and pensions for government employees versus non-government employees.
- Examples are given to illustrate how to calculate the taxable and non-taxable portions of retirement benefits like gratuity and leave encashment received by employees.
TK.3,000
individual
Maximum tax for any
Individual: TK.1,00,000
individual
Husband and wife: TK.2,00,000
Tax Rebate:
- 10% of tax payable or TK.10,000 whichever is lower for taxpayer who pays tax through
bank.
- 15% of tax payable or TK.15,000 whichever is lower for taxpayer who pays tax through
bank and has no other source of income except salary.
- 20% of tax payable or TK.20,000 whichever is lower for senior citizen of 65 years or above
who pays tax through bank
The document discusses taxation of salaries for employees. It notes that income from salaries includes basic pay, dearness allowance, commissions, bonuses, taxable allowances, perquisites, leave encashment, and contributions to retirement funds. It outlines the key allowances given to employees and the tax treatment of house rent allowance, special allowances as per section 10(14), and fully taxable allowances. The document provides guidance on calculating income from salaries and the exemptions available.
1. The document discusses the taxation of income from salary under the Indian Income Tax Act of 1961.
2. It defines salary broadly to include wages, pension, gratuity, allowances, perquisites, and other payments in lieu of or in addition to salary received from an employer.
3. The key aspects covered are the characteristics of salary income, its computation by adding various salary components and deducting allowances, and the basis of its chargeability for taxation.
An allowance is additional compensation provided by an employer beyond an employee's regular salary. Allowances can be categorized as taxable, partly taxable, or non-taxable. Taxable allowances include dearness allowance, entertainment allowance, and overtime allowance. Partly taxable allowances include house rent allowance, medical allowance, and conveyance allowance. Non-taxable allowances are those provided to government servants serving abroad and allowances for judges.
This document discusses various aspects of salary income taxation in India. It defines salary and outlines what is included in salary such as wages, commission, allowances, perquisites, etc. It discusses the taxation treatment of various allowances as fully taxable, fully exempted or partially exempted. It also explains the valuation of perquisites provided by employers such as rent-free accommodation, use of cars, interest-free loans, medical reimbursements and more. The document provides detailed guidelines on calculating the taxable value of such perks.
This document summarizes provisions related to taxation of salary income in India. It defines key terms related to salary such as basic salary, allowances, perquisites, and retirement benefits. It provides examples of allowances that are fully taxable, fully exempted, and partly taxable. The document also contains examples showing calculations of taxable salary income based on various components of compensation received by employees.
Tax Fact 2013/14 provides you information on income tax provisions of Nepal applicable for year 2013/14, with a general explanation of income heads, when tax is charged, residence and source concept, Withholding tax rates, and overall tax process.
The group report discusses the accounting system of Krishna Pauroti Pvt. Ltd, a bakery in Nepal. It describes the company's objective to understand basic accounting practices. It then explains the purpose is to describe their accounting methodology, compare theoretical and practical accounting, and provide complete accounting information. The report outlines their accounting process involving a daybook to record daily transactions, ledger to separate accounts, and books of purchase for cash transactions. It concludes their informal system is sufficient to determine outputs like financial position and profit/loss.
This document outlines income tax rates and slabs for various categories of taxpayers in India for Assessment Year 2012-13. It provides details of tax rates for individuals, HUFs, women taxpayers, senior and very senior citizens, AOPs/BOIs, cooperative societies, firms, local authorities, and domestic and foreign companies. It also provides information on tax deducted at source rates, forms for submitting TDS statements, due dates for TDS statements, and allowable deductions from gross total income under various sections of the Income Tax Act.
Recruitment selection process,methods and stepsMayur Khatri
The document discusses recruitment and selection processes. It defines recruitment as organizational activities that provide a pool of applicants to fill job openings. Selection is the process of discovering job applicants' qualifications and suitability for positions.
The document outlines factors that influence recruitment, sources for finding applicants, the selection process, and uses of psychological testing in candidate evaluation. It also discusses challenges in recruitment and selection, differences between the two processes, and provides a case study on practices at Wipro Technologies.
VAT was introduced in Nepal in 1997 to replace several taxes including sales tax. It is a broad-based tax applied at each stage of production and distribution. Businesses with over 2 million NPR in annual taxable sales must register for VAT and can claim input tax credits for VAT paid on purchases. They must collect VAT on sales and remit the difference between input and output tax to the government. Certain essential goods and services are VAT exempt.
This document contains 4 computation sheets that provide pricing details for the purchase of a 1 bedroom unit (Unit #d-1610) with a floor area of 24 sqm. The list price is PHP 2,639,000. The sheets show different payment options that involve discounts, taxes, fees, downpayments and deferred balances over 24 months at 0% interest. The total contract price ranges from PHP 2,412,911.60 to PHP 3,060,825 depending on the specific payment plan terms.
House rent allowance - compensation management - Manu Melwin Joymanumelwin
House Rent Allowance (HRA) is an allowance given by many Indian employers, including government employers, to salaried employees in India to help them meet the cost of rent of House occupied by them on lease or rental basis.
Dearness allowances - compensation management - Manu Melwin Joymanumelwin
This document discusses dearness allowances, which are provided to government employees in India to mitigate the effects of inflation. Dearness allowance is calculated as a percentage of basic salary and paid twice yearly. Various central pay commissions have made recommendations to improve the system, such as updating the consumer price index base year, providing uniform neutralization of dearness allowance at 100% of basic pay for all employees, and converting dearness allowance to dearness pay for cost of living increases over 50%. The current formula for calculating dearness allowance takes the average consumer price index for the past 12 months and compares it to a base level.
The document contains details of an individual's monthly income from April 2005 to March 2006. It lists sources of income like basic salary, house rent allowance, and other allowances. It also contains details for tax deductions that can be claimed under sections 80C, 80D, 80DD, and 80DDB of the Income Tax Act. The document is intended to help calculate the individual's tax liability for the financial year 2005-2006.
The Payment of Gratuity Act of 1972 requires employers in factories, mines, ports, and other establishments employing 10 or more persons to pay gratuity to their employees. Gratuity is payable when an employee has 5 years of continuous service and is terminated due to superannuation, retirement, death, or disability. Gratuity amount is calculated as 15 days wages for every completed year of service, with a maximum of 3.5 lakhs. Employers must make payment within 30 days of application, and interest is payable for delayed payments. Disputes can be appealed to controlling authorities within time limits defined in the Act.
Compensation Dimensions (Payment for Work and Performance, Payment for Non-working Days, Loss of Job Income Continuation Benefit, Disability Income Continuation Benefit, Deferred Income, Spouse/Family Income Continuation Benefit, Health, Accident and Liability Protection, Income Equivalent Payments)
Presentation is on computation of income from Salaries . this presentation is for the benefit of undergraduate commerce students and is based on the B.Com syllabus of Goa University
The document provides an overview of capital gains in India. It defines capital assets and discusses the different types of capital assets and capital gains. It explains that capital gains are taxable if a capital asset is transferred, resulting in a gain. The summary is:
[1] Capital gains arise from the transfer of a capital asset if the sale price is higher than the cost of acquisition and improvements.
[2] Capital assets exclude personal assets and assets held as stock-in-trade.
[3] Gains are classified as short-term or long-term depending on whether the asset was held for less or more than 36 months.
Pattern allowances are extra material added to patterns to account for shrinkage and other factors during the casting process. Patterns are larger than the final casting size. Allowances include shrinkage allowance for metal contraction, machining allowance for finishing, and draft allowance so patterns can be easily removed from molds. Proper allowances and pattern design can minimize defects and costs in metal casting.
The document provides a checklist of key aspects of various Indian labour laws including the Apprentices Act, Contract Labour Act, Employees' Provident Fund Act, and Employees' State Insurance Act. It outlines provisions related to applicability, registration requirements, obligations of employers and employees, benefits provided, contribution rates, and penalties for non-compliance.
This document summarizes various types of old age and retirement benefits provided to employees in India, including provident fund, pension, deposit linked insurance, medical benefits, and gratuity. Provident fund requires a 12% contribution from employees' basic wages each month and can be withdrawn after age 54. Pension provides family pension and life insurance benefits based on employee contributions. Deposit linked insurance provides additional insurance payouts for employees who die in service. Medical benefits cover retired employees' medical expenses. Gratuity provides a lump sum payment after 5 years of continuous service based on 15 days wages for each year of service.
The document outlines the joining formalities for new employees. It discusses the responsibilities of HR which include coordinating workplace accommodations, equipment, transportation, and opening an employee file. Documentation requirements are explained for both documents to be submitted such as identity and address proofs, and documents to be received including an appointment letter, policy manual, and insurance forms. An induction program and other activities to help with onboarding are also described.
This document discusses types of gross employment income that are taxable under Malaysian tax law. It covers various types of monetary income like wages, salary, bonuses, and allowances. It also discusses benefits in kind such as company cars, mobile phones, interest subsidies, and furnished accommodation. Various examples are provided to illustrate how different types of income and benefits are treated, such as share options, reimbursements, leave pay, gratuity, and car benefits including the prescribed value method.
This document discusses material control and management. It defines direct and indirect materials, and explains that material control aims to ensure the right quality and quantity of materials are available at the right time and place at minimum cost. Material control involves both accounting and operational aspects like purchase requisitions, bin cards to track inventory, and a stores ledger to record quantities and values of materials. The goals of material control are to maintain adequate inventory levels while avoiding excessive investment, wastage, and obsolescence of materials.
This document discusses various types of salary income that are taxable under Section 15-17 of the Income Tax Act of 1961. It defines salary broadly to include both monetary and non-monetary payments from an employer. It outlines the tax treatment of various allowances that may be received as part of salary, including which allowances are fully taxable, partially exempted, or fully exempted. It provides examples to illustrate how to compute the taxable and exempted portions of house rent allowance and children education allowance.
Salary includes remuneration received for personal services under a contract of employment. For income to be categorized as salary, there must be an employer-employee relationship. Salary is taxable on a due or receipt basis, whichever is earlier. Components of taxable salary include basic salary, bonuses, commissions, allowances, perquisites, and profits in lieu of salary. Certain allowances such as transport, house rent, and leave travel are partially or fully tax exempt. Perquisites include benefits provided by employers and are taxed as salary. Specified employees who are directors, substantial interest holders, or high salary earners face additional taxes on perquisites.
This document discusses salary and taxation under sections 15, 16 and 17 of India's income tax law. It defines salary and various components that constitute salary such as wages, annuity, pension, gratuity, fees, commissions, perquisites, profits and salary advances. It discusses the tax treatment of various allowances like house rent allowance, travel allowance, entertainment allowance, tuition fees allowance, and medical reimbursement. It also covers income from retirement benefits such as pension, commuted pension, leave encashment, gratuity, retrenchment compensation and voluntary retirement compensation. It provides details on tax exemptions and taxable portions for these retirement incomes.
The document discusses various aspects of salaries under the Income Tax Act such as:
1) It defines what constitutes salary and includes wages, pension, gratuity, fees, commissions, perquisites, advance salary, leave encashment etc.
2) It discusses deductions available from salaries like entertainment allowance, tax on employment, and various retirement benefits like gratuity, pension, commuted pension that are taxable or exempt.
3) It provides details on how to treat various salary components like HRA, transport allowance, education allowance, perquisites, interest-free loans for computing taxable income from salaries.
This document discusses the definition and taxation of salary under Indian income tax law. It defines salary as remuneration received periodically for services rendered through an express or implied contract. Salary can be received from one or more employers and includes both cash and non-cash remuneration. It discusses the tax treatment of various salary components such as allowances, perquisites, and reimbursements. It also provides details on exemptions available for certain allowances based on the type and amount.
INCOME TAXXX RELATED POWER POINT PRESENTATIONBojamma2
- The document discusses various topics related to income tax in India including the introduction of income tax, the need to pay taxes, tax slabs, key terms, types of income such as salary income and its components, exemptions under section 10 including leave travel allowance and house rent allowance, and deductions available under the Income Tax Act.
- It provides an overview of the history and development of income tax in India since 1860 and explains the various expenditures incurred by the government that require funding through tax collection.
- The document also addresses common questions around why citizens need to pay taxes and what the government does with the tax revenue collected.
The document discusses various aspects of salary income that are taxable under the head "Salaries" in India. It provides details on the tax treatment of items like basic salary, allowances, bonuses, leave encashment, pension, provident fund, and perquisites. Some key points covered are:
- Salary is taxable on a due or receipt basis, whichever is earlier.
- Allowances like DA, HRA and perquisites are included in taxable salary after any applicable exemptions.
- Leave encashment, gratuity and pension receive partial or full tax exemption depending on if the employee is in government or private sector.
- Perquisites provided to employees like rent-free housing and cars are
This document discusses various taxable and partly taxable allowances in India. It provides details on 10 allowances that are fully taxable such as dearness allowance, entertainment allowance, and overtime allowance. It also explains 10 allowances that are partly taxable including house rent allowance, fixed medical allowance, and hill area allowance. The document discusses different types of taxable perquisites such as rent free accommodation, interest free loans, transfer of movable assets, and gifts. It specifically explains perquisites that are taxable in all cases and those taxable in specified cases only, such as use of employer-provided motor cars.
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
This document provides an overview of the Employee Provident Fund (EPF) in India. EPF is a mandatory savings program for employees in the public and private sectors that provides benefits at retirement. It is managed by the Employees' Provident Fund Organization (EPFO). Both employers and employees must contribute 12% of the employee's salary to their EPF account each month. Over an employee's career, these contributions can grow significantly with interest and compounding, providing them a lump sum for retirement. The document outlines eligibility requirements, contribution rates, withdrawal terms, exemptions and benefits of the EPF program.
The document discusses various deductions available under Chapter VI-A of the Income Tax Act that can be claimed to reduce taxable income. It provides details on deductions for life insurance premiums (Section 80C), contributions to pension plans (Section 80CCC), Employee Provident Fund (Section 80C), Principal repayments of home loans (Section 80C), tuition fees (Section 80C), among others. It also summarizes deductions for interest on education loans (Section 80E), medical insurance/expenditure (Section 80D, 80DD, 80DDB), and contributions to pension plans (Section 80CCD). The maximum combined deduction amount under Section 80C, 80CCC, 80CCD is Rs. 1.5
This document discusses compensation plans for sales forces. It defines compensation and remuneration, and describes the differences between compensation and allowances. It outlines various types of compensation plans including straight salary, straight commission, and combinations of salary and incentives. It also discusses forms of commissions, fringe benefits, bonuses, perquisites, and allowances. Key features of an effective compensation plan and steps for developing a sales compensation plan are provided.
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptxchiragcdbc92
The document discusses the amendments made to the Employee's State Insurance Act of 1948 in India. Some key points covered include:
- The wage limit for ESIC contributions was increased to Rs. 15,000 and later to Rs. 21,000.
- ESIC will open medical and paramedical colleges.
- Medical facilities may be provided to other beneficiaries and allow participation of private parties.
- The ESI scheme provides social security benefits like sickness, maternity, disability and death benefits to organized sector workers.
- It applies to factories employing 10 or more power-using workers or 20 or more non-power using workers with wages up to Rs. 21,000 per month.
- Contributions are
The document provides details about income under the salary head in India, specifically focusing on perquisites and retirement benefits. It defines perquisites as benefits provided in addition to salary. Perquisites are further classified into categories - those taxable for all employees, those taxable only for specified employees, and those fully exempt. Various perquisites like rent-free housing, transport, medical benefits, and education are described in detail including tax treatment and valuation methods. Retirement benefits and the process for computing taxable salary income are also outlined.
This document summarizes various types of income that are exempt from tax under the Income Tax Act of India. It discusses income such as agricultural income, income received from an HUF or partnership firm, interest received by non-residents, leave travel concession, foreign allowances for government employees, death/retirement benefits, commutation of pension, encashment of earned leave, retrenchment compensation, and payments from statutory provident funds, recognized provident funds, approved superannuation funds, house rent allowance, and special allowances that are fully or partially exempt from income tax.
This document discusses the taxation of salary income in India. It defines salary broadly under section 17 to include monetary and non-monetary payments from employment. Salary is taxable either on a due or receipt basis, whichever is earlier. Allowances are generally taxable but some like House Rent Allowance and special allowances are partly exempt. Retirement benefits like gratuity and pension are taxable with certain exemptions. The key aspects covered are the scope and meaning of salary, deductions allowed, taxation of various employment-related payments and benefits, and important concepts around employer-employee relationships and place of accrual.
CTC refers to the total cost to a company for employing an individual. It includes the gross salary plus mandatory contributions to funds like PF and gratuity. CTC is always higher than the employee's take-home salary due to deductions like income tax. The document outlines various components of CTC like basic salary, HRA, allowances, PF contributions, ESI contributions, bonus, LTA and perquisites. It provides details on the tax treatment and calculation of these different components to arrive at the net salary.
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Salary Taxation Computation
1. Explain the comprehensive hypothetical example
covering all the aspect of salary computation with its
effect on taxability.
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-quanon 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
The aggregate of the above incomes, after the exemption(s) available, if any, is known as
„Gross Salary‟. From the „Gross Salary‟, the following three deductions are allowed under
Section 16 of the Act to arrive at the figure of Net Salary:
2. 1. Standard deduction - Section 16 (i)
2. Deduction for entertainment allowance – Section 16 (ii)
3. Deduction on account of any sum paid towards tax on employment – Section 16(iii).
BASIC SALARY
All employees are entitled to a basic salary which is fixed as per their respective
terms of employment either as a fixed amount or at a graded system of salary.
Under this graded system, apart from the basic salary at which the employee will
start, annual increments to be given to the employee are pre fixed in the grade.
Advance Salary, if received in previous year for next year is taxable on receipt
basis in the same previous year.
FEES, COMMISSION AND BONUS
Any fees or commission paid or payable to an employee is fully taxable and is
included in salary. Commission payable may be at a fixed amount or a fixed
percentage of turnovers. In both the cases, it is taxable as salary only when it is
paid or payable by the employer to the employee. When commission is based on
fixed percentage of turnover achieved by employee, it is included in basic salary
for the purpose of grant of retirement benefits and for computing certain
exemptions that we will discuss later on.
TAXABLE VALUE OF ALLOWANCES
Allowance is a fixed monetary amount paid by the employer to the employee
(over and above basic salary) for meeting certain expenses, whether personal or
for the performance of his duties. These allowances are generally taxable and are
to be included in gross salary unless specific exemption is provided in respect of
such allowance. For the purpose of tax treatment, we divide these allowances into
3 categories:
I. Fully taxable cash allowances
II. Partially exempt cash allowances
III. Fully exempt cash allowances
I. FULLY TAXABLE ALLOWANCES
3. This category includes all the allowances, which are fully taxable. So, if an allowance is not
partially exempt or fully exempt, it gets included in this category. The main allowances under
this category are enumerated below:
(i) Dearness Allowance and Dearness Pay
As is clear by its name, this allowance is paid to compensate the employee against the rise in
price level in the economy. Although it is a compensatory allowance against high prices, the
whole of it is taxable. When a part of Dearness Allowance is converted into Dearness Pay, it
becomes part of basic salary for the grant of retirement benefits and is assumed to be given
under the terms of employment.
(ii) City Compensatory Allowance
This allowance is paid to employees who are posted in big cities. The purpose is to compensate
the high cost of living in cities like Delhi, Mumbai etc. However, it is fully taxable.
(iii) Tiffin / Lunch Allowance
It is fully taxable. It is given for lunch to the employees.
(iv) Non practicing Allowance
This is normally given to those professionals (like medical doctors, chartered accountants etc.)
who are in government service and are banned from doing private practice. It is to compensate
them for this ban. It is fully taxable.
(v) Warden or Proctor Allowance
These allowances are given in educational institutions for working as a Warden of the hostel or
as a Proctor in the institution. They are fully taxable.
(vi) Deputation Allowance
When an employee is sent from his permanent place of service to some place or institute on
deputation for a temporary period, he is given this allowance. It is fully taxable.
(vii) Overtime Allowance
When an employee works for extra hours over and above his normal hours of duty, he is given
overtime allowance as extra wages. It is fully taxable.
(viii) Fixed Medical Allowance
4. Medical allowance is fully taxable even if some expenditure has actually been incurred for
medical treatment of employee or family.
(ix) Servant Allowance
It is fully taxable whether or not servants have been employed by the employee.
(x) Other allowances
There may be several other allowances like family allowance, project allowance, marriage
allowance, education allowance, and holiday allowance etc. which are not covered under
specifically exempt category, so are fully taxable
PARTIALLY EXEMPT ALLOWANCES
This category includes allowances which are exempt upto certain limit. For certain allowances,
exemption is dependent on amount of allowance spent for the purpose for which it was received
and for other allowances, there is a fixed limit of exemption.
(i) House Rent Allowance (H.R.A.)
An allowance granted to a person by his employer to meet expenditure incurred on payment of
rent in respect of residential accommodation occupied by him is exempt from tax to the extent of
least of the following three amounts:
a) House Rent Allowance actually received by the assessee
b) Excess of rent paid by the assessee over 10% of salary due to him
c) An amount equal to 50% of salary due to assessee (If accommodation is
situated in Mumbai, Kolkata, Delhi, Chennai) „Or‟ an amount equal to 40% of salary (if
accommodation is situated in any other place).
Salary for this purpose includes Basic Salary, Dearness Allowance (if it forms part of salary for
the purpose of retirement benefits), Commission based on fixed percentage of turnover
achieved by the employee.
The exemption of HRA depends upon the following factors:
(1) Basic Salary (2) Rent paid (3) Place of residence (4) HRA received
If an employee is living in his own house and receiving HRA, it will be fully taxable.
(ii) Entertainment Allowance
This allowance is first included in gross salary under allowances and then deduction is given to
only central and state government employees under Section 16 (ii).
5. (iii) Special Allowances for meeting official expenditure
Certain allowances are given to the employees to meet expenses incurred exclusively in
performance of official duties and hence are exempt to the extent actually incurred for the
purpose for which it is given. These include travelling allowance, daily allowance, conveyance
allowance, helper allowance, research allowance and uniform allowance.
(iv) Special Allowances to meet personal expenses
There are certain allowances given to the employees for specific personal purposes and the
amount of exemption is fixed i.e. not dependent on actual expenditure incurred in this regard.
These allowances include:
a) Children Education Allowance
This allowance is exempt to the extent of Rs.100 per month per child for maximum of 2 children
(grand children are not considered).
b) Children Hostel Allowance
Any allowance granted to an employee to meet the hostel expenditure on his child is exempt to
the extent of Rs.300 per month per child for maximum of 2 children.
c) Transport Allowance
This allowance is generally given to government employees to compensate the cost incurred in
commuting between place of residence and place of work. An amount uptoRs.800 per month
paid is exempt. However, in case of blind and orthopaedically handicapped persons, it is
exempt up to Rs. 1600p.m.
d) Out of station allowance
An allowance granted to an employee working in a transport system to meet his personal
expenses in performance of his duty in the course of running of such transport from one place to
another is exempt upto 70% of such allowance or Rs.6000 per month, whichever is less.
III. FULLY EXEMPT ALLOWANCES
(i) Foreign allowance
This allowance is usually paid by the government to its employees being Indian citizen posted
out of India for rendering services abroad. It is fully exempt from tax.
6. (ii) Allowance to High Court and Supreme Court Judges of whatever nature are exempt from
tax.
(iii) Allowances from UNO organisation to its employees are fully exempt from tax.
From the following particulars, compute gross salary of Mr Raj for the assessment
year 20012-13. He is employed in Manufacturing industry in Delhi at a monthly salary
of Rs.4000. He is entitled to commission of 1% on sales achieved by him, which
were Rs.10 lakh for the year.
7. In addition, he received the following allowances from the employer during the
previous year:
1. Dearness Allowance Rs.2000 per month which is granted under terms of
employment and counted for retirement benefits.
2. Bonus Rs.32000
3. House Rent Allowance Rs.1000 per month (Rent paid for house in
Mumbai Rs.1200 per month)
4. Entertainment Allowance Rs.1000 per month
5. Children Education Allowance Rs.500 per month
6. Transport Allowance Rs.1000 per month
7. Medical Allowance Rs.500 per month
8. Servant Allowance Rs.200 per month
9. City Compensatory Allowance Rs.300 per month
10. Research Allowance Rs.500 per month (amount spent on research
Rs.3000)
Solution:
Computation of Income from Salary of Mr. X for the Assessment Year 2006-07
Amount / Rs.
Basic Salary
48,000
Dearness Allowance
24,000
Commission
10,000
Bonus
32,000
House Rent Allowance
(Rs.1000 x 12 – Amount exempt Rs.6200)*
5,800
Entertainment Allowance
12,000
Children Education Allowance
(Rs.500 x 12 – Amount exempt Rs.100 x 2 x 12)
3,600
Transport Allowance
(Rs.1000 x 12 – Amount exempt Rs.800 x 12)
2,400
Medical Allowance (fully taxable)
6,000
Servant Allowance (fully taxable)
2,400
City Compensatory Allowance (fully taxable)
3,600
Research Allowance
(Rs.500 x 12 – Amount exempt Rs.3000)
3,000
Gross Salary:
152,800
* Amount of HRA exempt is least of 3 amounts
a) 50% of Salary (Basic Salary + DA granted under terms of employment +
8. Commission based on percentage of turnover – Rs.48,000 + Rs.24,000 +
Rs.10,000 = Rs.82,000) = Rs.41,000
b) Actual HRA received : Rs.1000 x 12 = Rs.12,000
c) Rent paid (Rs.1200 x 12) – 10% of Salary (Rs.82,000) Rs.14,400 –
Rs.8,200 = Rs.6,200
Ahuja Girish and Ravi Gupta (2006), Systematic Approach to Income Tax
and
Sales Tax, Bharat Publication, Sahitya Bhawan, Agra
Chandra Mahesh and D.C. Shukla (2006), Income Tax Law and Practice,
Pragati Publication, New Delhi.
Mehrotra H.C. (2006), Income Tax Law and Accounts, Sahitya Bhawan,
Agra.
.Singhania V.K. and Monica Singhania (2006), Students Guide to Income
Tax,
Taxmann Publications, New Delhi.