THE DEFINITION OF "SALARY"

As per new rule 3(9) (vi) “salary” includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but does not include the following, namely:

(a) Dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;

(b) Employer’s contribution to the provident find account of the employee;

(c) Allowances which are exempted from payment of tax,

(d) Value of perquisites specified in sub-section (2) of Section 17 of the Income Tax Act.

(e) any payment or expenditure specifically excluded/under proviso to sub-clause
(iii) of clause (2) or proviso to clause (2) of Section 17.

As per the Finance (No. 2) Act, 2004, the contribution made by the Central Government in the previous year to the account of an employee under the pension scheme in terms of Section 8OCCD would be added to the total salary income of the employee and tax deductible up to 1 00/o of salary.

As per the Finance (No. 2) Act,. 2009 the value of ESOPS and superannuation contribution in excess of Rs. 1 lakh per annum would be added as a perquisite in the salary of the employee. It is further provided that the value of any other fringe benefit as may be prescribed would be treated as a perquisite in the hands of an employee.
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MORE TOPICS ....
THE DEFINITION OF 'SALARY' Income
Special Compensatory Allowances Exempted From Tax Upto some Limit
Conveyance And Transport Allowances Are fully Exempted From Tax
Allowances for A Helper,Uniform, Academic Research are Tax-Exempt
Free Medical Facilities Not A Perquisite in Certain Circumstances
Exemption Of LTA Or LTC (Leave Travel Assistance Or Concession)
Excess Contribution By Employer To a Employees RPF A/c is Taxable
No Benefit For Free Gas, Free Watchman And Gardener From Employer
Sweeper,Gardener,Watchman,Personal Attendant Benefit To Employee
Gas And Electric Energy Or Water Benefit To The Employee
Free Or Concessional Education Facilities Benefit To The Employee
Tax Planning For Rent-Free Residential Accommodation
Personal Or Private Journey Free Of Cost Benefit To The Employee
Interest-Free Loan Benefit To The Employee
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Employer Can Pay Tax On Perquisites On Behalf Of The Employees
Employees Stock Options by Employer
Exemption Of House Rent Allowance Through Proper Tax Planning
How An Employee Can Get Tax-Free Car For Personal Use
Perquisite Valuation Of Car For Office And Personal Use
Deduction For House Rent U/S 80GG
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