What is salary as per Section 17 A?
According to Section 17(1) salary includes the following amounts received by an employee from his employer, during the previous year : Wages; any annuity or pension; (Family pension received by heirs of an employee is taxable under income from other sources);
Is rent-free accommodation taxable?
Accommodation, either rent-free, or with a minimal amount of rent, is one of the important perquisites given to employees. These benefits are knows as perquisites and are taxable as per the provisions stated in the Income Tax Act. Perquisites are usually provided by the employee in kind rather than in monetary form.
What is profit in lieu of salary as per Section 17 3?
The amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto is regarded as profits in lieu of salary.
What is 10B form?
What is Form 10B? Form 10B enables a taxpayer to file an audit report if the taxpayer has applied for or is already registered as charitable or religious trust / institution by filing Form 10A. Form 10B is accessed by the CA added by the taxpayer under the My CA service and is assigned the relevant form.
How is Section 17 salary calculated?
As per section 17(1), salary includes the following amounts received by an employee from his employer, during the previous year. The contribution made by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme, referred to in Section 8OCCD.
What is concept of salary as per section 17 1 under head of income from salary?
The term ‘salary’ has been defined under section 17( 1) of the Income Tax Act to include salary, perquisites and profits in lieu of salary. Hence, to calculate the income under the head salaries, the total amount of salary, perquisites and profits in lieu of salary received in a year must be calculated.
What is salary for rent free accommodation?
Definition of Salary Salary for purpose of Taxability of Rent free accommodation shall include = Basic pay+ Dearness Allowance/pay (if forms part of superannuation or retirement benefits) + Bonus + Commission + Fees + All taxable allowances + All monetary payments chargeable to tax, from one or more employers.
What are the SEC 17 salary perquisite and profits in lieu of salary?
Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to …
Who is eligible for tax exemption?
To be exempt from withholding, both of the following must be true: You owed no federal income tax in the prior tax year, and. You expect to owe no federal income tax in the current tax year.
What is Section 17 ( 2 ) ( b ) in the Income Tax Act?
Section 17 (2) (ii) (b) in The Income- Tax Act, 1995. (b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines’: Provided that, in a case falling in sub- clause (b), the employee shall attach with his return of income a certificate from the hospital
What are the perquisites under Section 17 of the Act?
Under the Act, the term “perquisites” is defined by section 17 (2) as including the following items: the value of rent-free accommodation provided to the assessee by his employer
What are the perquisites of the Income Tax Act 1961?
Section 17 (2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i) the value of rent-free accommodation provided to the assessee by his employer; (ii) the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer;
What does TP stand for in Section 17?
TP= Taxable perquisite under sub-clause (viia) of clause (2) of section 17 of the Act for the current previous year; TP1 = Aggregate of taxable perquisite under sub-clause (viia) of clause (2) of section 17 of the Act for the previous year or years commencing on or after 1st day April, 2020 other than the current previous year ( See Note );