Friday, 29 August 2014

Meaning of Salary u/s 17


MEANING OF SALARY U/S 17

1.Wages. Fully Taxable.
2.Annuity or Pension. Fully Taxable
3.Gratuity. It has been treated separately.
4. (a)  Any Fees -- Fully Taxable
   (b)  Commission -- Fully Taxable
   (c)  Bonus -- Fully Taxable
   (d)  Perquisites -- (Perks) These are treated separately u/s 17(2)
   (e) Profit in lieu of Salary -- These are treated separately u/s17(3)
5.Salary in lieu of Leave / Leave Encashment. Fully Taxable.
6.Advance Salary. Fully Taxable
7.Arrears of Salary. Fully Taxable.
8.Refund of Provident Fund (PF)
  (a)  If SPF -- Fully exempted
  (b)  If RPF -- Fully exempted if service is more than 5 years.
  (c)  If URPF -- Taxable portion is added in salary income. Taxable portion is equal to employer’s contribution + interest on this part. Interest on own contribution to URPF is taxable under the head “ Income from Other Sources.”

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