urgent help

1. Statutory corporations are the corporations which are establised under any law which is passed in parliament. Life insurance corporation of india (lic) is one such example of a statutory corporation.Its employees are employees of statutory corporation.

Local authority is any authority of the state government. MCD or municipal corporation of Delhi is a local authority. Its employees are employees of local authority.

3. You have to understand that salary is taxable u/s 15. Sec.16 provides the deductions which are to be made from salary. Sec.17 actually defines the word salary.

sec.17(1) provides the meaning of salary. Hence you can say that what incomes which are to be taxable under the head salary is the one which are listed u/s 17(1).

Now, reading through Sec.17(1), we see that salary includes allowances and perquisites and profits in lieu of salary. which are defined further in sec.17 itself.

now in the problem given by you, the head 'income from salary' includes the same as defined in sec.17(1) except allowances and perquisites.

Though on a salary sheet, Basic, DA and commission should be shown seperatly, it can be assumed that the above head includes Basic, DA and commission......