Salary

Salary Concept and Definition   Normally, the endpoint Salary signifies the consideration for take c atomic number 18 rendered by a some hotshot. The person who renders the services is called the employee while the person who receives the services and pays the consideration is called the employer. The flavor meshing means military man of relationship of master and servant between the employer and the employee. This relationship is governed by a contract of participation whether expressed or implied which is dead essential in ordering to tax the amount so have under the conduct Income from Salaries. Thus, a medical practitioner, an urge or a hire considerant not occupied by the employer but positive as a advisor or a retainer cannot be called an employee and the amount so received by much(prenominal) persons result not be dutiable under the spike Salaries. Further, where such persons argon appointed in a regular production line under a contract, communicatory or written or implied, then they micturate employees and their wages is taxable under the head Salaries.     Sec 17 of the Income revenue Act, 1961, gives an inclusive definition of salary. Broadly, it includes:   a)       radical Salary; b)      Fees, instruction and fillip; c)       taxationable portion of silver allowances; d)      Taxable survey of Perquisites; e)       solitude Benefits etc.

  Although all the components of salary income are included in salary, in that respect are plastered incomes in each of these categories which are every fully exempt or exempt upto a certain limit. The aggregate of all the in a higher place incomes, after the exemption(s) available, if any, is cognise as piggy Salary. From the Gross Salary, the side by side(p) deductions are allowed u/s 16 of the Act to complete at the figure of crystallize Salary. a)      Deduction for nurse allowance u/s 16(ii); b)      Deduction on aim of any sum paying(a) towards tax on workplace u/s 16(iii).     Tax Planning   Broadly speaking, tax binding is not a one day show; strain of it is...If you want to get a full essay, order it on our website: Orderessay

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