Extra Cultivation

INCOME TAX NOTES PART – 02 SALARY MEANING Meaning of salary [Section 17(1)] – Salary includes – a. wages; b. any annuity or pension; c. any gratuity; d. any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages; e. any advance of salary; f. any payment received by an employee in respect of any period of leave not availed by him; g. employer’s contribution towards Recognized Provident Fund (RPF) in excess of 12% of employee’s salary and interest credited to RPF in excess of 9.5% p.a.; h. transferred balance in a recognized provident fund to the extent it is taxable; and i. the contribution made by the Central Government (or any other employer) in the previous year, to the account of an employee under a notified pension scheme referred to in section 80CCD. Profits in lieu of salary [Section 17(3)] – It includes the following – a. the amount of any compensation due to or received by an assessee from his employer (or former employer) at o

INCOME TAX NOTES PART-01 INCOME TAX NOTES PART-01 BASIC CONCEPTS Computation of Total Income Taxable income of any assessee is computed as per the format given below - Computation of net taxable income/ total income of an assessee for the assessment year 20XX-20XX: Particulars Amount (in Rs.) Income under the head “Salaries” XX Income under the head “House Property” XX Income under the head “Profits and gains of business or profession” XX Income under the head “Capital Gains” XX Income under the head “Income from other sources” XX Gross total income (GTI) XX Less: Deductions under chapter VIA [Sec. 80] XX Net taxable income or Total income (NTI) XXX Computation of tax Tax to be paid by any assessee is computed as per the format given below – Computation of tax liability of an assessee for the assessment year 20XX-20XX: Particulars Amount (in Rs.) Income-tax on net taxable income XX Less: Rebate under section 87A XX XX Add: Surcharge (% of income