Key pints 1.

Salary charge on receipt besis when advance salary is received as well as accural basis when there is outstanding salary 2. The amt received by assessee, person or individual can be trated as a salary if there is relationship as master and servant or employer and employee. Hence the amt received from master then only it comes under this head.

3 if there are two master then both salary should be included under this head. 4 salary may be received from former employer, present employer, or prospective employer all will come under this head. 5if partner of a firm receive salary, bonus, or commission from partnership firm such amount is not a taxable under income from salary

6 there is no difference between wages and salary for tax purpose. 7 salary must be real not fictitious.

salary
Salary include under section 17(I) 1 wage 2 pension (taxable portion) 3 gratuity (taxable portion) 4 Any fees, commission, bonus perquisites( in kinds) profit in lieu of salary 5 advance salary 6 arrears' salary 7 bonus 8 house rent allowance (taxable) 9 ex gratia 10 free holiday home facility 11 special allowance 12 leave salary 13 lunch allowance 14 entertainment allowance received 15 rent free accommodation (house facility) 16 premium of life insurance policy paid by employer 17 compensation received from employer 18 amt received from key man policy

PROFORMA OF SALARY
Name of assesse :Assessement year :Previous year :Legal status :------2013-2014 2012-2013 Individual

computation income from salary

Particulares 1. Salary (gross) a . Basic salary (including advance and arrers) b. Fees c. Commiossion d. Pension (computed) (-) exempted under section 10 (10A) e. Gratuity (-) exempted F. Leave salary (-) exempted under section 10 (10) g. Annuity uncommuted pension h. Uncommuted pension i. Bouns(taxable on receipt basis) j. Ex gratia 2. Allowancces a. DA allowances, TA, conveyance allowances (-) exempted under section 10 (14) b. House rent allowence (-) exempted under section 10 (13A) c. City compensitive allowance d. Lunch allowance e. Special allowance F. Medical allowance g. Service allowance h. Entertainment allowance Amt .rs Amt .rs xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx

XX xx XX xx XX xx xx xx xx xx

3. PERQUISITES (Taxable) a. Rent free accomodation b. Benefits and aminities c. Life insurance premium paid by employer d. Fringe benefits 4. PROFIT LIEU OF SALARY a. Compensation received from employe b. Employer contribution unrecognised fund with intrest received c. Employer contribution to recognised provident fund in excess of 12% of basic salary ( upto 12% exempted) d. Amount received under key man 5. GROSS SALARY 6.(-) Deduction under section (16) a. Entertainment allowance ( list of the ) following amount 1. Rs. 5000 p.a 2., 1/5 of the basic salary 3. Actual entertainment allowance received during the year (only for government employee) b. Profession tax or tax on employement under section 16 (iii) Amount paid by assessse as a professional tax fully deducted 7. NET TAXABLE SALARY

xx xx xx xx

xx xx xx xx xxx

xx

xx

xx

xx xx

GRATUITY

Govt Employee

Non-Govt Employee

1. Fully Exempted

Covered under gratuity act 1972

Other assesse / person

1. Rs 1000000
2. Actual amt 3. 15 days salary fir every completed years of service or part there of in excess of 6 months

1. Rs 1000000 2. Actual amt 3. month of actual salary for every completed year

PENSION

UNCOMMUTED PENSION

COMMUTED PENSION

1. Peroidical

payment 2. Taxable for all

If person is Govt employe ,then he is fully exempt

NON-GOVT EMPLOYE

Gratuity received 1/3 * Commuted received * 100

Non received gratuity 1/2 * Commuted received * 100 % of pension

% of pension

LEAVE SALARY
CONDITIONS :

Leave encashment actually received. 10 months average salary. Cash (1 month * completed years of service) (leave taken in terms of months) * average salary per month Rs.300000
Note : LEAST AMOUNT IS EXEMPTED