AGREED WITH FATEMA.
PERQUISITES ARE ALSO PART OF SALARY. SALARY ALSO INCLUDES EXCESS OF 12% IN RPF.
HENCE NO NEED FOR CORRECTION OF ABOVE STATEMENT.
Salary is a different story. Tax is required to be paid on salary due from an employer whether paid or not, received in advance though not due and also on arrears of salary paid.
Salary includes wages, fees, commissions, perquisites, profites in lieu of, or, in respect of encashment of leave etc. It also includes the annual accrection to the employee's account recognized provident fund in excess of 12% of the salary of the employee, along with interest applicable, shall be included in the income of the employee.
Profits in lieu of salary includes amount received in lump sum or otherwise, prior to employment (temptation to switch jobs) or after cessation of employment (do not join a competitor or divulge sensitive information). It will not include interests on contributions or any sum received, including bonus, under keyman insurance.
Salary can be any of the following forms:
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Wages;
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Any annuity or pension;
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Any gratuity;
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Any fees/commissions, profits/perquisites in lieu of any salary or wages;
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Any salary advance;
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Any payment that employee receives for a period of leave not taken by him;
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Any annual accreditation to provident fund balance at the credit of an employee
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The total of all sums that are comprised in the transferred balance