Tagged: Income under the head Salary

Income from Salary under Income Tax Act, 1961

To understand Income from Salary and its taxability, one need to understand the definition of Salary:  If the following amount received by an employee from his employer the amount so received is defined as...

PROVIDENT FUNDS

Particulars Statutory Recognized Unrecognized Public Constitued inder Provident Funds Act,1952 EPF and Misc,Provident Act, 1952 & recognized by the Commissioner of PF and CIT Not recognized by the Commissioner of Income Tax Public Provident...

LEAVE TRAVEL ASSISTANCE (LTA) U/S 10(5) Rule 2B

LTA benefit can be claim if below conditions are fulfilled : (a) An individual can avail the benefit of LTA offered by his employer, twice in a block of four years. (b) The present...

Allowances fully taxable without any exemptions

1. Basic Salary  9. Fees 2. Dearness Allowance 10. Lunch/Tiffin Allowance 3. Advance Salary 11. Overtime Allowance 4. Arrears of Salary 12. Servant Allowance 5. City Compensatory Allowance 13. Warden Allowance 6. Bonus 14....

Professional Tax

(i) Professional tax or tax on employment paid by an employee, levied under a State Act shall be allowed as deduction (ii) such deduction is available only on actual payment (iii) If an employer...

Entertainment Allowance

Applicable only for Government Employees [Sec.16(ii)] Least of the following will be allowed as a deduction: (i) Actual amount of entertainment allowance received (ii) 20% of Basic salary of the Individual (iii) 5,000  

VOLUNTARY RETIREMENT COMPENSATION

Conditions for claiming exemption: (i) An individual, who has retired under the Voluntary Retirement scheme, should not be employed in another company of the same management. (ii) He should not have received any other...

Retrenchment Compensation under Income Tax

Retrenchment Compensation is received by a workman at the time of: (i) closing down of the undertaking. (ii) transfer (irrespective of by agreement/compulsory acquisition) if the following conditions are satisfied: • service of workmen...

Taxability of uncommuted pension and commuted pension

1. Taxability of Uncommuted Pension or Monthly Pension: (a) Pension is received periodically by the retired employee (b) It may be received by Government or non-government employees (c) Amount received shall be fully taxable...

Gratuity as per Income Tax Act

Gratuity payment is a lump sum amount that an employer will pay to the employee as an recognition of your devotion to the company. Now the question arises, When I will get my Gratuity?...