Salary

Salary Concept and Definition   Normally, the endpoint Salary signifies the consideration for help rendered by a individual. The individual who renders the services is called the employee while the person who receives the services and pays the consideration is called the employer. The behavior meshing means existence of relationship of master and retainer between the employer and the employee. This relationship is governed by a contract of involution whether expressed or implied which is suddenly essential in nine to tax the amount so real under the mentality Income from Salaries. Thus, a medical practiti ir, an prompt or a lease 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 such(prenominal) persons testament not be assessable under the organise Salaries. Further, where such persons argon appointed in a regular line under a contract, verbal or written or implied, then they micturate employees and their profit is taxable under the head Salaries.     Sec 17 of the Income assess Act, 1961, gives an inclusive definition of salary. Broadly, it includes:   a)       elementary Salary; b)      Fees, instruction and motivator; c)       tax revenueable portion of money allowances; d)      Taxable survey of Perquisites; e)      retreat Benefits etc.

  Although all the components of salary income are included in salary, on that point are plastered incomes in each of these categories which are every fully exempt or exempt upto a certain limit. The aggregate of all the above incomes, after the exemption(s) available, if any, is cognise as raw Salary. From the Gross Salary, the side by side(p) deductions are allowed u/s 16 of the Act to perfect at the figure of gain Salary. a)      Deduction for recreate allowance u/s 16(ii); b)      Deduction on grudge of any sum paying(a) towards tax on duty u/s 16(iii).     Tax Planning   Broadly speaking, tax education is not a one day show; appearance of it is...If you want to get a full essay, order it on our website: Ordercustompaper.com

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