Summary Notes on Salary.......See the attachment.......

hey gaurav its nice u started this... and i would love to join...  i m with u...  start  this topic frm beginning...  defination of salary and wht it includes

SALARY

- Sec. 15 => On what basis ? (Taxability)

- Sec. 16 => Deductions from Salary

- Sec. 17 => Gross Salary

       - Sec. 17 (1) - Meaning of salary

       - Sec. 17 (2) - meaning of perquisites

       - Sec. 17 (3) - meaning of profit in lieu of salary

GOLDEN RULE 

Master & Servant relation between employer and employee

- Firm gives salary to partner.......it will not be taxed here under salary because of absence of this rule

- CA in Practise..........fee from client is profession......not taxed under salary

- CA in job.........fee from emploer is taxable under salary

- Member of Parliament / MLA.........not any emploer.....not taxed under salary.......why ?......because they are electe....they are not appointed.....

Section 15 - TAXABILITY

Salary is taxable on due or recipt basis, Whichever is earlier

if it is taxable on reciept basis, it will not be taxed when becomes due

then what is advance salary ?

advance salary means salary recieved in advance

then what is Advance against salary ?

its a loan taken by employee....its not salary....its LOAN

1.  Salary Due, whether paid or not..........taxable when due, not taxed when it was paid

2.  Salary paid, before due .......taxable when paid, not taxed when it was due

3.  Arrears of salary paid........taxable when it was paid if not taxed earlier

place of accrual

salary will be deemed to accrue or arise at a place where services are rendered.

Exception : Govt. employee (citizen of india)

Sec. 17 (1) - Meaning of salary

Salry Includes

         - Wages                 - Bonus              - Profits in lieu of salary

         - Annuity                - Commission        - Advance Salary

         - Pension                 - Perquisites        - PF Contribution

         - Any Fee

ab aage ki explanation kl krunga ........sone ka time ho gya...........GOOD NIGGHT CCI......to all members...........

Wages - Same treatment as salary

Annuity - 

Paid by present employer.........................Taxable as salary

paid by former employer...........................taxable as profit in lieu of salary

other payments of annuity........................taxable u/h other sources

Bonus - taxable on recipt basis........if recieved in advance, assess can claim relief u/s 89

Fee / Commission - taxable.....only when it is paid/payable by employer to employee

ALLOWANCES

means fixed amount for certain purpose

allowances on the basis of taxability

- HRA

- Notified / specified allowances

- entertainment allowance

- others

HRA

HRA is taxable u/h salary (sec.17) to the extent which it is not exempt u/s 10(13A)

Sec. 10(13A)

HRA is exempt to teh extent of minimum following 3 limits

- actual HRA received

- rent paid - 10% of salary

- 50 % of salary (if house is in DMCK).......DMCK - Delhi Mumbai Chennai Kolkata

   or

   40 % of salary (in any other city)

Meaning of  Salary

- Basic Salary

- DA (only if it is part of payment or as per pterm of employement)

- Commission (only if it is %age of turnover)

Computation

HRA actually recieved......................XXXX

(-) Exempt u/s 10(13A).......................XXX

Added in Gross Salary.....................XXXX

great work bro.... very nicely explained