I am an employee of private limited co. In salary from company I am receiving i) Basic salary ii) Diwali bonus (once in a year) iii) Conveyance allowance iv) Commission on sales (as variable pay). My company is deducting some expenses from my salary i.e i) Mobile charges ii) profession tax. For Tax computation how should I arrive at net salary i.e. what should be added/deducted?
Basic Salary + Allowances {Exempt u/s 10 (14) & 10 (13A)} + Bonus {Limit} = Gross Salary - pt = Net Salary
Please note that - Expenses in income from salary should be ignore (only for ur case)
(1) The following income shall be chargeable to income-tax under the head "Salaries" :
(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;
(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him.
(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.
Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as "Salary".
RMA And Associates LLP
New Delhi
CA Inter
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CA Suraj Garg & Associates
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CA Final
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CCI
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