Salary

payment Concept and Definition   Normally, the term compensation signifies the contemplation for serve rendered by a person. The person who renders the services is called the employee part the person who receives the services and pays the consideration is called the employer. The expression meshing bureau mankind of family of master and servant between the employer and the employee. This relationship is governed by a contract of employment whether expressed or implied which is absolutely essential in order to evaluate the aggregate so received under the head Income from Salaries. Thus, a medical examination practiti unmatchabler, an exhort or a chartered considerant not active by the employer but positive as a adviser or a retainer cannot be called an employee and the amount so received by such persons will not be taxable under the head Salaries. Further, where such persons argon ordained in a regular job under a contract, verbal or written or implied, then the y score employees and their remuneration is taxable under the head Salaries.     Sec 17 of the Income Tax Act, 1961, gives an inclusive definition of salary. Broadly, it includes:   a)      Basic Salary; b)      Fees, training and Bonus; c)      Taxable portion of cash allowances; d)      Taxable valuate of Perquisites; e)      Retirement Benefits etc.

  Although all the components of salary income are include in salary, there are certain incomes in individually of these categories which are either fully rationalise or exempt upto a certain limit. The aggregate of all the above incomes, later on the exempti! on(s) available, if any, is cognise as Gross Salary. From the Gross Salary, the side by side(p) deductions are allowed u/s 16 of the Act to total at the figure of Net Salary. a)       synthesis for cheer allowance u/s 16(ii); b)      Deduction on account of any sum paid towards tax on employment u/s 16(iii).     Tax readying   Broadly speaking, tax grooming is not a one day show; sort of it is...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper