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50,000 Regarding Taxability of

This document discusses the determination of taxable income under various heads including salaries, house rent allowance, gratuity, and perquisites. It provides definitions and guidelines for what should be included in taxable income calculations for each category. For salaries, taxable income includes basic salary, advances, arrears, annuities, fees, commissions, bonuses, allowances and profits in lieu of salary. It excludes certain deductions and perquisites not received in cash. The same guidelines generally apply across income categories with some adjustments or additional inclusions specified for each.

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mshashi5
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40 views

50,000 Regarding Taxability of

This document discusses the determination of taxable income under various heads including salaries, house rent allowance, gratuity, and perquisites. It provides definitions and guidelines for what should be included in taxable income calculations for each category. For salaries, taxable income includes basic salary, advances, arrears, annuities, fees, commissions, bonuses, allowances and profits in lieu of salary. It excludes certain deductions and perquisites not received in cash. The same guidelines generally apply across income categories with some adjustments or additional inclusions specified for each.

Uploaded by

mshashi5
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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For computation of taxable Rent-free House House Rent Qualifying Entertain- Gratuity Determination of salary ofRs.

taxable income under the head or Allowance Amount of ment 50,000 regarding taxability of
salaries Concession in rent Contribution to Allowance perquisites under sec. 17(2)(iii)(c)
R.P.F.

Basic Salary, Dearness Allowance, All


1. Basic salary or wages. 1. Basic Salary 1. Basic Salary. Same as for house Basic Salary Basic Salary, D.A. (if other taxable allowances, benefits
2. Advance salary. (excluding advance Rent Allowance as exclusive given under the terms of received in cash, Bonus, Commission,
3. Arrears of salary. or arrear of salary 2. Dearness Allowance if per preceding of any employment) and etc. and all monetary payments in-
4. Annuity or pension. received). the terms of employment so column. allowance, Commission based on cluded in gross salary after allowing
5. Gratuity. 2. Taxable Allowances. provide, i.e, it is taken into benefit or fixed percentage of deductions u/s 16. For this purpose
6. Fees, Commission, 3. Bonus. account for retirement other per- turnover. It does not in- salary will not include perquisites not
Bonus. 4. Commission. benefits, or Dearness Pay. quisite. clude bonus, other com- received in cash.
7. Allowances including 5. Any other payment in (Excluding all other allowan- mission, H.R.A. over-
Dearness Allowance. cash. ces, bonus or time wages and any
8. Profits in lieu of salary. (Excluding dearness al- perquisites and all extras). other allowance and
9. Perquisites. lowance not entering into perquisites. If the
10. Excess contribution to R.P.F. retirement benefits of 3. Commission based on employee is covered by
by employer over 12% of the employee, fixed percentage of the Gratuity Act, D.A.
salary. employer's contribution to turnover achieved by the will always be included
11. Excess interest received R.P.F., allowances exempt employee and given under in. salary.
from R.P.F. over 9.5% rate from tax and value of terms of employment.
of interest will be taxable. perquisites.)
12. Taxable portion of
transferred balance to R.P.F
.

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