Question 5: What are the income chargeable to income tax under the head ‘Salaries’ and what are the items included in ‘Perquisites’?(वेतन शीर्षक में कर योग्य आयें कौन सी हैं तथा बताइए कि कौन से मद ‘अनुलाभ’ में कर योग्य हैं?)
1. Meaning of ‘Income under the Head Salaries’ Under the Income Tax Act, 1961 , income under the head “Salaries” refers to all monetary and non-monetary benefits received by an employee from his employer for rendering services. 👉 In simple words: If you are working under someone (an employer) and receive any kind of payment — whether in cash, kind, or as a facility — it will generally be taxed as salary income . 2. Conditions for Taxability under ‘Salaries’ To be taxed under this head, the following conditions must be satisfied: There must be an employer–employee relationship. Payment must be made by the employer to the employee. The payment must be in the nature of salary , not business income. 3. Components of Income under the Head ‘Salaries’ (Section 15–17) According to Section 15 to 17 of the Income Tax Act, the following are taxable as salary income: (A) Basic Salary The fixed amount paid by the employer. Example: ₹50,000 per month as basic pay. (B) Allowan...