Income from Salaries.
Salary is the remuneration received by or accruing to an individual periodically for service rendered as a result of an express or implied contract.
The existence of employer-employee relationship is the sine-qua-non for taxing a particular receipt under the head “salaries
What is income from salary in income tax?
Taxable Income for Salaried Employees
|Yearly Salary that is Taxable||Salaried Income||Total Taxable Income|
|House Rent Allowance||Rs.3,00,000||Rs.1,28,000|
|LTA (leave travel allowance)||Rs.20,000||Rs.8000|
3 more rows
What are the income chargeable under income from salary?
Income Chargeable under The Head Salaries. b) Any arrears of salary received are fully taxable in the year of receipt subject to relief u/s 89(1). All wages received in consideration of services rendered are taxable under the Income Tax Act, 1961.
How is tax calculated on salary?
The Total Taxable Income from salary is calculated after all applicable deductions, such as HRA, LTA exemption, Interest on Home Loan are adjusted from the total income, which is the gross salary + income from other sources. And the amount between 5 to 10 lac will be levied 20 per cent tax + 3 per cent Cess.
What is salary and its characteristics?
Salary, in simple words, means remuneration of a person, which he has received from his employer for rendering services to him. The remuneration received by professionals like doctors, architects, lawyers etc. cannot be covered under salary since it is not received from their employers but from their clients.