For computation of taxable
taxable income under the head
salaries
1. Basic salary or wages.
2. Advance salary.
3. Arrears of salary.
4. Annuity or pension.
5. Gratuity.
6. Fees, Commission,
Bonus.
7. Allowances including
Dearness Allowance.
8. Profits in lieu of salary.
9. Perquisites.
10. Excess contribution to R.P.F.
by employer over 12% of
salary.
11. Excess interest received
from R.P.F. over 9.5% rate
of interest will be taxable.
12. Taxable portion
transferred balance to R.P.F
.
Rent-free House House Rent Qualifying Entertain- Gratuity Determination of salary ofRs.
or Allowance Amount of ment 50,000 regarding taxability of
Concession in rent Contribution to Allowance perquisites under sec. 17(2)(iii)(c)
R.P.F.
Basic Salary, Dearness Allowance, All
1. Basic Salary 1. Basic Salary. Same as for house Basic Salary Basic Salary, D.A. (if other taxable allowances, benefits
(excluding advance Rent Allowance as exclusive given under the terms of received in cash, Bonus, Commission,
or arrear of salary 2. Dearness Allowance if per preceding of any employment) and etc. and all monetary payments in-
received). the terms of employment so column. allowance, Commission based on cluded in gross salary after allowing
2. Taxable Allowances. provide, i.e, it is taken into benefit or fixed percentage of deductions u/s 16. For this purpose
3. Bonus. account for retirement other per- turnover. It does not in- salary will not include perquisites not
4. Commission. benefits, or Dearness Pay. quisite. clude bonus, other com- received in cash.
5. Any other payment in (Excluding all other allowan- mission, H.R.A. over-
cash. ces, bonus or time wages and any
(Excluding dearness al- perquisites and all extras). other allowance and
lowance not entering into perquisites. If the
retirement benefits of 3. Commission based on employee is covered by
the employee, fixed percentage of the Gratuity Act, D.A.
employer's contribution to turnover achieved by the will always be included
R.P.F., allowances exempt employee and given under in. salary.
from tax and value of terms of employment.
perquisites.)
of