Salary - Income Tax Notes Part - 02
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