Costing and Taxation · Ch 7 — Income under the Head "Salaries"
Terms Introduced in the Chapter
Terms Introduced in the Chapter
This section collects, in one place, every term, exemption and valuation rule introduced in this chapter, for quick re …
Salary is chargeable to tax on whichever is EARLIER of the due basis or the receipt basis; arrears not already taxed in an earlier year are taxed …
An inclusive definition covering wages, annuity/pension, gratuity, fees/commission/perquisites/profits in lieu of salary, advance salary, leave encashment, and specified provide …
DA is always fully taxable; it additionally enters "salary" for computing the HRA exemption and the accommodation-valuation percentage ONLY if it forms part of retirement benefit …
Exempt up to the LEAST of: actual HRA received; rent paid minus 10% of salary; 50% of salary (Mumbai/Kolkata/Delhi/Chennai) or 40% …
Exempt up to ₹100 per month per child, maximum 2 children; any excess, or any amount for a third or later chil …
Fully taxable for a general employee (the general exemption was withdrawn from AY 2019-20); exempt up to ₹3,200 per month for an employee who is blind, deaf-and-dumb, or orthopedically handicapped with a …
A casual emolument, benefit or amenity attached to an office, granted in addition to salary, in cash or (more commonly) in kind. A specific, named list of perquisit …
Value = the licence fee determined by the Central/State Government under its own rules, minus any rent the emp …
Value = 10% of salary (city population over 40 lakh), 7.5% (15-40 lakh), or 5% (15 lakh or less) — 2011-census bands, effective 1 September 2023 — minus an …
Add to the unfurnished value: 10% p.a. of the cost of furniture (if employer-owned) or the actual hire charges (if employer-hired), minus any amount r …
Free/concessional/reimbursed education for an employee's child is valued at NIL if the cost is up to ₹1,000 per month per child; if this is exceeded, the ENTIRE amount (not ju …
A named list kept entirely outside tax regardless of value: medical treatment in an employer/Government/approved hospital, uniform recreational facilities, free refreshment, capped-value free meals, official-use telephone, employer-provided laptops/computers, and speci …
Deduction, from Gross Salary, of the amount actually paid by the employee towards professional tax during the year; capped in practice at ₹2,500 per annum under Article 276. If the employer pays it on the employee's behalf, the sum is first added to Gross Salary as a per …