KEY POINTS TO REMEMBER IN INCOME FROM SALARY

Posted by Unknown on 12:27 in Income from Salaries | Comments : 0

Important Points :

1.   Relationship of employer and employee must exist to create salary income.

2.   Only receipts from employer are taxable under this head. Receipt  from a person other than employer are taxable under “Other Source”.

3.   In case Salary is received after deduction of following items... these are added back to get fully Salary :

      (i)   Own Contribution to Provident Fund.

      (ii)  Tax Deducted at Source (TDS)

      (iii)  Repayment of Loan etc.

      (iv)  LIC Premium, if deducted from salary.

      (v)   Group Insurance Scheme.

      (vi)  Rent of House provided by employer.

1. Previous Year in case of Salaries is always Financial Year i.e. for the Assessment Year 2009-2010 it is 1-4-2008 to 31-3-2009.