Taxation of Salaried Employees and Pensioners

by Ram Dutt Sharma

Chapter
1. Introduction	1
2. Essential Characteristics of Salary	6
3. Different Forms of Salary	10
4. Salary not treated as Income under the head 'Salary'	14
5. Exempted Salary	20
6. "income" includes	23
7. Scope of Total Income	25
8. Income deemed to accrue or arise in India	28
9. Basis for charging income under the head 'Salaries'	31
10. Income from Salary	41
11. Perquisite	45
12. Valuation of perquisites	56
13. Profits in lieu of salary	71
14. Deductions from Salaries	80
15. Treatment of Retirement Benefits	82
16. Allowances which are Fully Exempt	103
17. Allowances which are Partially Taxable	109
18. Allowances - Exemption depends upon actual expenditure by the employee	114
19. Allowances to meet personal expenses which are exempt to the extent of amount received or the limit specified,whichever is less	122
20. Allowances which are Fully Taxable	136
21. Taxability of various Funds	138
22. Taxability of Salary of Foreign Citizen	145
23. Deductions to be made in computing Total Income from Salary	150
24. Rebate of Income-tax in case of certain Individuals	204
25. Relief when salary, etc., is paid in Arrears or in Advance	207
26. New Tax Regime - Lower Tax Rate Option	218
27. Income Tax Rates [Old Tax Regime]	227
28. Income Tax Deduction at Source from Salary	238
29. Taxation of Pensioners	252
30. Computation of Income from Salary	272

About the Author

Ram Dutt Sharma

Ram Dutt Sharma was born on 27th June, 1958 in Narnaul, Haryana. He got his post-graduation from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and retired as Income Tax Officer on 30.06.2018. He worked at various stations of North-West Region of Income-tax Department. He has wide experience of all wings of Income-tax Department such as Assessment Unit, Special Range, TDS Wing, Investigation Wing, etc. He has been Contributing articles and addressing on topics relating to Income Tax at NADT Regional Campus, Chandigarh & Bhopal. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations.

He is recipient of first-ever Finance Minister's Award 2017, the Income Tax Departments highest honour for sustained devotion, commitment to duty & promoting excellence in the field of Direct Taxation at National Level. The Hon'ble Union Finance Minister, Shri ArunJaitley conferred this Finance Ministers Award for Excellence for his meritorious services at VigyanBhawan, New Delhi on 24.07.2017.

Awarded by Hon'ble Member (Revenue& TPS), CBT, Special Secretary to the Government of India Certificate of Appreciation for his contribution recognized and included in the chapter Miscellaneous Orders in Let Us Share A compilation of Best Practices & Orders Vol. VIII released on 31stOctober, 2016.

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