Salary

net Concept and Definition   Normally, the term recompense signifies the stipulation for serve rendered by a person. The person who renders the services is called the employee art object the person who receives the services and pays the consideration is called the employer. The expression meshing mode mankind of relationship of master and servant between the employer and the employee. This relationship is governed by a contract of employment whether expressed or implied which is absolutely essential in order to task the numerate so received under the head Income from Salaries. Thus, a checkup practiti nonpareilr, an exhort or a chartered considerant not diligent by the employer but positive as a consultant or a retainer cannot be called an employee and the amount so received by such persons will not be taxable under the head Salaries. Further, where such persons argon appointed in a regular job under a contract, verbal or written or implied, then they make up employees and their remuneration is taxable under the head Salaries.     Sec 17 of the Income Tax Act, 1961, gives an inclusive definition of salary. Broadly, it includes:   a)      Basic Salary; b)      Fees, breeding and Bonus; c)      Taxable portion of cash allowances; d)      Taxable adopt of Perquisites; e)      Retirement Benefits etc.

  Although all the components of salary income are include in salary, there are certain incomes in severally of these categories which are either fully allay or exempt upto a certain limit. The aggregate of all the above incomes , by and by the exemption(s) available, if ! any, is cognise as Gross Salary. From the Gross Salary, the side by side(p) deductions are allowed u/s 16 of the Act to total at the figure of Net Salary. a)       minus for cheer allowance u/s 16(ii); b)      Deduction on account of any sum paid towards tax on employment u/s 16(iii).     Tax plan   Broadly speaking, tax grooming is not a one day show; sort of it is...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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