Income from Salary: Income Tax Act, 1961
Keywords:
Salary, basis of charge, deductions, allowances, perquisitesAbstract
This submission has been made to have a better understanding of Income from Salary as a source of income. In the course of the submission the meaning of income from salary is dealt along with its computation. Further, the important provisions relating to the computation of income from salary under Income Tax Act, 1961 have been discussed. The important provision of the concerned statute includes Section 15 which deals with the Basis of Charge, Section 16 dealing with deductions and Section 17 dealing with the constituents of salary which are divided into three heads i.e., income from salary, allowances and perquisites.
References
1. Singhania Kapil, Singhania Vinod K. Taxmann ’s direct taxes law and practice. 63rd ed. New Delhi: Taxmann Publications Pvt. Ltd.; 2009.
2. Cowan v. Seymour (1920) 1 KB 500 (CA).
3. CIT v. Shiv Charan Mathur, (2008) 306 ITR 126 (Raj).
4. Lalu Prasad v. CIT & Ors, (2009) 316 ITR 0186.
5. Justice Deoki Nandan Agarwala v. Union of India & Anr. (1999) 237 ITR 0872.
6. The Income Tax Act, 1961, s. 17(1).
7. Vikash Mundhra CA. (2017). Computation of income under the head Salary . Part I. [online] Tax Point India. Available at: https://www.taxpointindia.com/computation -income-head-salary-part- 1/.
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