Category Archives: Salary Income Tax

Tax Treatment of various kinds of Allowances under Salary income

Any remuneration paid by an employer to an employee in consideration of his services is called salaries. It includes monetary value of those benefits and facilities, which are provided by the employer and are taxable. They include basic salary, advance salary, fees, commission, and bonus, taxable value of cash allowances, perquisites and retirement benefits.  Allowance… Read More »

Tax Treatment of Perquisites under Salary Income

Salary means remuneration paid to the employee by the employer for the services rendered by him during a period of time.”Salary” includes wages, fees, commissions, perquisites, profits in lieu of, or, in addition to salary, advance of salary, annuity or pension, gratuity, payments in respect of encashment of leave etc. In this article we will… Read More »

Provisions for House Rent Allowance under Income Tax

  House Rent Allowance (HRA) allowance is received by the salaried class employees. HRA allowance is allowed as per the section 10(13A) of Income tax act in accordance with the Rule 2A of the Income Tax Rules. Under Section 10(13A) of the Income-tax Act, 1961, any special allowance specifically granted to an assessee by his employer… Read More »

Salary Income under Income Tax Act

Salary, in simple words, means remuneration of a person, which he has received from his employer for rendering services to him. But receipts for all kinds of services rendered cannot be taxed as salary. The existence of an’ employer-employee’ relationship is a must for a payment to be taxed under the head salaries. Accordingly, the… Read More »

Meaning of Annuity under Income Tax Act 1961

  Normally it is an annual income received by the employee from his employer or it is a reward of his life time services which was given by him to the organization. As Per section 17(1) (ii) of the Income Tax Act, 1961 Annuity or Pension is payment which is made by the employer to the… Read More »