Skip to main content

INCOME UNDER HEAD SALARIES | CS EXECUTIVE TAX LAWS



The first head under the Income Tax is income under the "Salaries" head. Salaries is the one that has various components and associated computations in calculating the taxable income under the head relative to the other head in the Income Tax. Let's delve into knowing the definition of wages, what salary, salary allowances, retirement benefits, leave cash and salary criteria entail.



MEANING OF SALARY

Salary is the remuneration that a person receives or accrues for service rendered by an express or implied contract, and where such remuneration is periodic. The presence of an employer-employee relationship is the most basic aspect under the heading "salaries" for taxing a specific receipt. 

Salary is the remuneration that a person receives or accrues for service rendered by an express or implied contract, and where such remuneration is periodic. The presence of an employer-employee relationship is the most basic aspect under the heading "salaries" for taxing a specific receipt.   

The remuneration earned by a person, in any form whatsoever, is regarded as a salary only if the relationship between the payer and the payee is between the employer and the employee or the master and servant. As far as the existence of the persons covered by the head salary is concerned, the employer may be an entity, a company, an association of persons, a company, a corporation, a central government, a government agency, a public body, or a local authority, etc., probably operating in or outside India. As far as the worker is concerned, he is a person who can be a full-time worker or a part-time worker.

A Member of Parliament or of the State Legislature shall not, however, be regarded as a government employee. Salaries and allowances earned by him are also not taxable under the heading 'Salaries,' but are taxable under the heading 'Income from other sources,' in accordance with section 56.

WHAT DOES “SALARY” INCLUDE?

"Salary" includes, as per Section 17(1) of the Income Tax Act: 

  • Wages
  • Annuity or pension
  • Gratuity
  • Fees, Commission, any perquisites or profits in lieu of salary in whatsoever name
  • Advance of Salary
  • Any amount transferred from an unrecognized provident fund to a recognized provident fund
  • Contribution of the employer to a Recognized Provident Fund of the employee in excess of the prescribed limit specified under the applicable provisions
  • Leave Encashment
  • Compensation paid to the employee as a result of variation in Service contract etc.
  • The contribution made by the Central Government or any other employer to the account of an employee under a notified pension scheme referred to in section 80 CC.
On our blog page, continue to read INCOME UNDER HEAD SALARIES


Thanx for reading Hope you are helped by this article.


With Our CS EXECUTIVE ENTRANCE TEST (CSEET) Prepare for CS Entrance Exam 2021 With our CSEET Online Classes direct from your home/office. We here at Takshila Learning provide you the CSEET Video Lectures, CSEET Pen drive Classes along with CSEET Study Material 2021 and CS EXECUTIVE ENTRANCE TEST Mock Test to help you prepare for your CSEET Exam with the utmost ease.

For more details about #CSEET #CSEETonline coaching #cseetstudymaterial #CSEETclassesonline

 Call at 8800999280/83/84

 Email Us @ info@takshilalearning.com

Labels:

Comments

Post a Comment

Thank you we will contact ASAP.

Popular posts from this blog

Allotment of DIN (Director Identification Number)

Allotment of DIN (Director Identification Number) CS professional course :  Section 153 of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014 Every individual intending to be appointed as a director as a director of a company shall make an application for allotment of Director Identification Number (DIN) to the Central Government in such form and manner and along with such fees as may be prescribed. Rule 9 of Companies (Appointment and Qualification of Directors) Rules, 2014 (1) Every Individual, who is to be appointed as a director of a company shall make an application electronically in Form DIR 3, to the Central Government for the allotment of a DIN along with such fees as provided in the Companies (Registration Offices and Fees) Rules, 2014. (2) The Central Government shall provide an electronic system to facilitate submission of an application for the allotment of DIN through the portal on the MCA21...
Post a Comment
Read more

PURCHASED GOODWILL METHOD UNDER IND AS 103

The acquisition of subsidiaries results in  Goodwill calculation  and also records net assets of the subsidiary at fair value on the date of acquisition. Let’s get answers to all the questions related to Goodwill, valuation of NCI, and impairment relating to them. Q1 – What are the ways in which an entity can make payment for purchase consideration? ANS: – Cash – Share exchange – Deferred payment – Contingent consideration Q2 – How is deferred payment dealt, when it forms part of purchase consideration? ANS:  The deferred payment is discounted to present value and included in the cost of consideration. At the end of each year, the liability is increased by unwinding the discount, until the payment is settled. For example, An amount of Rs. 108,000 was deferred to be paid after 2 years. The discount rate applicable is 8%. The net present value today of Rs. 108,000 is equal to (108,000 * 1) / (1.08) ^2)= Rs. 92,593 included in purchase consideration. A liability of Rs. 92,59...
Post a Comment
Read more

Contract of Guarantee important topic for CS Professionals

Contract of Guarantee important topic for CS Professionals For  CS Course  , Takshila Learning is offering CS Professional online classes for students in an easy, convenient, and simple way through our portal  www.takshilalearning.com .  It helps students to grab the conceptual knowledge in a different but simple way. CS online classes for CS preparation are a collection of HD-quality recorded lectures with the detailed explanation of the content by experienced and well-known faculties. An interesting topic from Drafting – ‘ Guarantees ’ is discussed below: Guarantees Contract of Guarantee A “ contract of Guarantee ” is a contract to perform the promise, or discharge the liability, of a third person in case of his default. A Guarantee may be either oral or written. Parties involved in the Contract Surety:  The person who gives the guarantee is called the  “surety”. Principal debtor:  The person in respect of whose default the gua...
Post a Comment
Read more