Income under head salaries

INCOME UNDER HEAD – SALARIES

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• BASIS OF CHARGE

• TAX TREATMENT OF DIFFERENT TYPES OF SALARIES

• RETIREMENT BENEFITS

• ALLOWANCES

• PERQUISITIES

• DEDUCTIONS Under Section 16

• HOW TO COMPUTE SALARY & PRESENTATION ?

Agenda/Topics to Be Covered

• Any benefit due to the EMPLOYER-EMPLOYEE RELATIONSHIP is taxable under head Salaries.

• Salary is taxable on RECEIPT OR DUE whichever is earlier.

• BONUS is taxable on RECEIPT basis.

• Employer-Employee Relationship

• If an individual receives salary from more than one source/employer during the same P/Y

• Any arrears of salary paid or allowed. . . W.E.F from__________

BASIS OF CHARGE – Section 15

Taxable u/h SALARIES

All will be taxable

• SALARY includes –– Wages

– Any annuity or pension

– Any Gratuity

– Any fees, commission, perquisite or profit in lieu of salary or in addition to salary

– Any Advance Salary

– Leave Salary

– Amount transferred to RPF to the extent is taxable.

– Any other payment made or benefit extended due to the employer-employee relationship.

• ADVANCE SALARY : taxable on receipt basis in the A/Y relevant to the P/Y in which it was received. (However relief can be claimed)

• ARRERS SALARY : TAXABLE ON RECEIPT BASIS, if the same has not been subjected to tax earlier on due basis. (However relief can be claimed)

• BONUS & COMMISSION RECEIVED : Both will be taxable in the year of receipt, if it has not been taxed before. (However relief can be claimed)

TAX TREATMENT OF DIFFERENT FORMS OF SALARY INCOME

• Encashment of leaves by surrendering leave standing to one’s credit is known as LEAVE SALARY.

• Leave Salary paid to legal heirs in the case of Death of the employee is not taxable.

• Leave Salary during the continuity of employment will be chargeable to tax for all.

• However , leave salary is encashed on retirement by a Government employee will fully exempt

• But for others it will be exempt up to a limit & balance shall be taxable.

LEAVE SALARY

LEAVE SALARY. . .

During the job On Retirement

FULLY TAXABLE Govt. Employee

FULLY EXEMPT

OTHERS

Least of the following shall be exempt :-

a) Actual amount receivedb) ₹ 3,00,000/-c) Salary* for a period of 10 monthsd) Cash equivalent of unavailed leave @ 30 days for every

year of service1. Leaves actually allowed / 30 days per year

(lesser)2. Leaves actually taken

3. (1–2) * Avg. monthly salary* as per (c) /30

Salary meansBASIC + DA+ Comm.

GRATUITY

Govt. Employee

Fully Exempt

Other Employees

ActApplicable

1. Amount Received2. ₹ 1,000,000/-

3. 15/26 * Last drawn Salary * no. of years of service in excess of 6 months

1. Amount Received2. ₹ 1,000,000/-3. 15/30 * Avg. Salary of

10 months* No. of completed years

LEAST OF THE ABOVE WILL BE EXEMPT AS THE CASE MAY BE

Basic + DA

• When the gratuity is received from more than one employer in the same previous year, the aggregate maximum amount exempt from tax cannot exceed ₹10,00,000/-.

• Any gratuity paid to an employee while he continues to remain in service not exempt in any case; except :-– On retirement

– On Death

– On Resignation

– On Termination

– On becoming incapacitated prior to such retirement

GRATUITY. . . .

PENSIONUncommuted i.e. in instalments Commutted

i.e. Lump sum

TAXABLE FOR ALLGovt. employeeOther Employees

FULLY EXEMPTS1 = Compute 100% value of Commuted pension

S2 = • If no Gratuity – ½ of S1 = Exempt• If along with Gratuity – 1/3 of S1 = Exempt

• Pension received from UNO by the employee or his family member is not taxable.

• Pension received by the family after death – Taxable in the hands of recipient under head Other Sources and Deduction of 1/3rd OR ₹15,000/- shall be given.

PENSION. . .

• Compensation received by a workmen under the Industrial Dispute Act, 1947 or under any Act, Rule, Order, Notification issued at the time of retrenchment, is exempt from tax to the extend of lower of the following :-1. Amount Received

2. ₹ 5,00,000/- (amount specified by the Govt.)

3. 15/26 * Salary * Every completed year of Service in excess of 6 months

RETRENCHMENT COMPENSATION

• Compensation received at the time of voluntary retirement or separation is exempt from tax if following condition are satisfied :-– Employees of Central or State Government

– Employee of P.S.U. or any other company

– Statutory Corporation

– Local authority, University

– I.I.T. or notified institute of management.

• Least of the following shall be exempt :1. Amount Received

2. ₹ 5,00,000/-

3. a) 3 months Salary * Every completed year of Service

b) Salary of the balance months of service left before his normal retirement.

VOLUNTARY RETIREMENT COMPENSATION

If exemption is claimed in one A/Y. . . then exemption is not allowed in another A/Y. . .

ALLOWANCES

Category #1

RECEIVED OR

SPENT(whichever is

less)

Category #2

RECEIVEDor

LIMIT(whichever is

less)

Category #3

HOUSERENT

ALLOWANCE(H.R.A.)

1. CONVEYANCE ALLOWANCES

2. ACADEMIC ALLOWANCES

3. TRAVELLING / TRANSFER ALLOWANCES

4. HELPER ALLOWANCES

5. UNIFORM ALLOWANCES

6. DAILY ALLOWANCES

Category 1 : Received or Spent(whichever is less)

CHILDERN EDUCATION ALLOWANCES :

Exempted up to ₹100/- per month per child (up to maximum 2 children).

• HOSTEL EXPENDITURE ALLOWANCES :

Exempted up to ₹ 300/- per month per child (up to maximum 2 children)

• TRANSPORT ALLOWANCES :

Exempted up to ₹ 800/- per month,

For handicapped employees - ₹1,600/- per month

Category 2 : Received or Limit(whichever is less)

ALLOWANCES ALLOWED TO TRANSPORT EMPLOYEES :

The amount of exemption shall be :- ₹10,000/-

(whichever is less) or 70% of such allowances

HILLY AREA / BORDER ARES / REMOTE ARES ALLOWANCES :

₹ 300 – 7,000 /- per month

Category 2 : Received or Limit(whichever is less). . .

• TRIBAL AREA ALLOWANCE : ₹200/- per month

• UNDER GROUND ALLOWANCES :

These allowances are granted to employees working in uncogneial, unnatural climate in under-ground coal mines shall be exempt up to ₹ 800 per month.

Category 2 : Received or Limit(whichever is less). . .

• Least of the following shall be exempted :– Actual amount received

– Rent paid less 10 % of the SALARY

– 50% of the Salary (if the house is located in Delhi/Mumbai/Kolkata/Chennai)

– 40% of the Salary (if the house is located elsewhere )

CATEGORY 3 : HOUSE RENT ALLOWANCE (H.R.A.)

• H.R.A. IS CALCULATED MONTHLY AND CAN BE CALCULATED TOGETHER FOR THE PERIORD WHERE – ACTUAL HRA

– RENT PAID

– SALARY

– LOCATION OF HOUSE IS SAME

• IF ANY OF THE ABOVE CHANGES H.R.A. SHALL BE CALCULATED SEPERATELY

• NO EXEMPTION SHALL BE GIVEN, IF RENT PAID DOESNOT EXCEED 10 % OF SALARY.

CATEGORY 3 : HOUSE RENT ALLOWANCE (H.R.A.) . . .

• Entertainment allowances is first included in income under the head Salaries and deduction is given only to Government Employees :-

• Least of the following shall be exempt :– Actual amount received

– 20% of Basic Salary

– ₹5,000/-

ENTERTAINMENT ALLOWANCE

• In respective of all the perquisites whenever any concession is given or any amount is recovered from the employee, the value of the perquisite shall be calculated as follows:-

• Step 1 : Determine Value of the Perquisite as if nothing has been recovered from the employee

• Step 2 : Determine the amount recovered from the employee

• Step 3 : (Step 1 - Step 2) shall be the taxable value of the perquisite; if Positive.

PERQUISITIES

• Who is a Specified Employee ?– The following employees are called specified employees :-

– DIRECTOR

– An employee who is drawing a salary in excess of ₹50,000/-

– Employee who has Substantial interest in the employer company

Having 20% or more voting power or equity shared in the employer company

PERQUISITES

An employee who is not specified employee is a Non-Specified Employee.

a) GOVERNMENT EMPLOYEES : as per Government Rules (Licence Fees)

b) Others – Value of RFA shall be :-

1. RENT FREE ACCOMODATION

Population Owned by Employer Not owned by Employer

Up to 10 lakhs

7.5 % of the Salary* 15% of the Salary*

OR

Actual Rent

(whichever is LESS)

10 – 25 lakhs

10% of the Salary*

More than 25 lakhs

15% of the Salary*

c) ACCOMODATION IN HOTEL :

24% of Salary (OR) ACTUAL CHARGES {whichever is less}

However nothing shall be taxable if the accommodation is provided for not more than 15 days + provided on transfer of employees from one place to other.

For all Government and Non-Government employees.

1. RENT FREE ACCOMODATION. . . .

d) FURNISHED HOUSE :-

If furniture is also provided by the employer to their employee, then value of such furniture shall be

10% p.a. of the cost

or

Actual hire charges

Any maintenance charges or repaired of the building incurred by employee shall be ignored.


e) TWO HOUSES ON TRANSFER :-

In case of transfer from one place to another , and if employee is provided house at the new place and the employee also retains the old house, then value of such houses shall be taken on follows :-

Up to 90 days of transfer : Value of one house whichever is lower shall be taxable.

Post 90 days : Value of both the houses shall be taxable.


900 Any 1 of lower value Both the houses. . . . .

f) CONCESSIONAL HOUSE :-

The amount recovered from the employee shall be reduced from the value determined for such house.

g) RENT FREE ACCOMODATION

When house is located in a remote area and provided to an employee working at a mining site or on shore oil exploration site.


TAXABLE

Note:

1. Salary of all employees shall be taken.

2. Only current year’s monetary payment shall be taken.

3. Salary – Basic + DA (UTOE) + Bonus + Commission + Taxable portion of all allowances + all monetary payments but does not include Provident Fund.


• Loan type = Any

• Rate = Rate charged by S.B.I. on 1st day of relevant P/Y

• Interest shall be calculated on the outstanding balance for each loan as on the last day of each month.

• However nothing shall be taxable– If Loan in aggregate do not exceed ₹20,000/- OR

– If the loan provided for the treatment of specified diseases.

• But if such loan has been reimbursed under any medical insurance scheme & the loan is not paid to the employer, it shall be taxable.

• Check only the last days balance & calculate interest thereon for the whole month. Transactions within the month shall be ignored & if no balance at the end of the month – No interest

2. VALUE OF INTEREST FREE LOAN

a) LAPTOP & COMPUTERS : NIL VALUE

b) OTHER ASSETS : 10% p.a. of the Actual Cost

OR

Actual Hire Charges

3. USE OF MOVEABLE ASSETS

• Value of the benefit shall be :– Actual Cost of the assets shall be reduced by the following percentage for

each completed year; ignoring fractions from the date of purchase/put to use by the employer :

– Computer & Electronic Items 50% W.D.V.

– Motor Car 20% W.D.V.

– Any other assets 10% S.L.M.

“Electronic items do not include household appliances”

4. TRANSFER OF MOVEABLE ASSETS

a) SWEEPER / GARDNER / WATCHMAN / PERSONAL ATTENDENT : Actual cost to the employer.

b) GAS, ELECTRICITY, WATER : Own Source : manufacturing cost per unit. Other Source : amount paid to outside agency.

5. PERSONAL EXPENDITURE BENEFITS

C) CHILDREN EDUICATION :

If the education facility is owned by employer.OR

Free education is provided in any other educational institution by the reason of employee being in employment of that employer.

FAIR MARKET VALUE OF SUCH SIMILAR EDUCATION.

HOWEVER NOTHING SHALL BE TAXABLE IF VALUE PER CHILD DOESNOT EXCEED ₹1,000/- PER MONTH.

Other Cases : Actual expenditure incurred by employer.

5. PERSONAL EXPENDITURE BENEFITS

6. LEAVE TRAVEL CONCESSION

OTHER THAN BY AIR

1st CLASS AC FARE1st Class Fare if Public transport

exists.

By AIR

If the Journey is made

National carrier

Fare up to Economy Class

• Exemption can be claimed for 2 journeys in a block of 4 years i.e. 2006-2009, 2010-2013.

• Out of 2 journey, exemption of one journey can be claimed in the calendar year.

• Exemption can be claimed only for 2 children (who are born after year-1999)

• LTC given to foreign citizen is chargeable to tax.

L.T.C. . . .

WITHIN INDIA :-

• Expenditure incurred or reimbursed on any medical treatment provided to an employee or any member of his family is FULLY EXEMPT without any limit for treatment in any hospital, dispensary, etc., if– Maintained by the Employee

– Maintained by Government

– Maintained by any local authority

– Approved by Govt. for treatment of Government or other employees

– Approved for a specified disease only for treatment of specified disease.

7. MEDICAL PERQUISITE

WITHIN INDIA :-

• Health Insurance Premium incurred or reimbursed for insurance on the health of employee or any member of his family is FULLY EXEMPT.

• REIMBURSEMENT BY EMPLOYER of any amount actually spent by the employee for obtaining his or his family member’s treatment in any hospital, nursing home or a clinic up to maximum ₹15,000/- for P/Y.

7. MEDICAL PERQUISITE . . .

OUTSIDE INDIA:-

• Such medical expenses shall be tax-free to the extent permitted by R.B.I.

• Expenses on stay abroad of the employee or any member of his family for medical treatment with one attendant who accompanies the patient in connection with such treatment to the extent permitted by R.B.I.

• TRAVEL EXPENSES of patient ( employee or his family member) and one attendant. . Who accompanies the patient in connection with such treatment shall be exempt,

IF Gross Total Income (excluding such travel expenses but after including taxable medical expenses but after including taxable medical and boarding) doesn’t exceed ₹2,00,000/-.

7. MEDICAL PERQUISITE. . .

• Spouse & Children of the employee (Whether dependent or not).

• Dependent :

– Parents

– Brother

– Sister of the employee

FAMILY FOR THE VALUATION OF MEDICAL FACILITIES & LTC

8. VALUATION OF MOTAR CAR

WHEN CAR IS OWNED OR

HIREDBY EMPLOYER

WHEN CAR IS OWNED AND USED BY THE EMPLOYEE

1. Exclusively for OFFICIAL purpose2. Exclusively for PERSONAL purpose3. Partly OFFICIAL Partly PERSONAL

purpose

1. EXCLUSIVELY FOR OFFICIAL PURPOSE NIL

2. EXCLUSIVELY PERSONAL PURPOSE Actual Running & Maintenance+

Actual Chauffeur Expenses+ wear &

tear @ 10% of Cost ORActual HIRE CHARGES

When car is owned or hired by EMPLOYER and used for :

3. PARTLY OFFICIAL & PARTLY PERSONAL PURPOSE :– Running & Maintenance Expenditure is borne by EMPLOYER

up to 1.6 Litres CC ₹1,800 p.m.Exceeding 1.6 Litres CC ₹2,400 p.m.

– Running & Maintenance Expenditure is borne by EMPLOYEEup to 1.6 Litres CC ₹600 pmExceeding 1.6 Litres CC ₹900 pm

– Add : ₹900 per month of Chauffeur ₹900 pm (BOTH CASES)

Nothing shall be deducted in respect of 600/900/9000, if any amount is recovered from the employee.

When car is owned or hired by EMPLOYER and used for :

1. Exclusively for Official Purpose : NIL

2. Exclusively for Personal Purpose : Actual Expenditure incurredby employer

3. Partly Official Partly Personal :• Up to 1.6 Litres CC ₹1,800 p.m.

• Exceeding 1.6 Litres CC ₹2,400 p.m.

WHEN CAR IS OWNED BY EMPLOYEE AND USED :

STEP 1 : Find out the actual expenditure incurred by the Employer.

STEP 2 : Less :₹1,800 / 2,400 per month₹900 per month for Chauffer

STEP 3 : Less :Any amount recovered from employee

BALANCE . . . . If positive then TAXABLE

WHEN CAR IS OWNED BY EMPLOYEE AND USED . . .

• If the amount of Gift exceeds ₹5,000/- in aggregate during the previous year, then such excess amount shall be taxable.

• However if the gift is by way of Cash or by way of Cheque,

then the entire amount shall be taxable

9. VALUATION OF PERQUISITE IN RESPECT OF GIFTS, VOUCHER OR TOKEN

STEP 1 : Find out the expenditure incurred by the employer in respect of credit card used by the employee or any

member of his household.

STEP 2 : Less : Expenditure incurred for only official Purpose

STEP 3 : Less : Amount recovered from employee

BALANCE IF POSITIVE = TAXABLE

10. VALUATION OF CREDIT CARD

STEP 1 : Expenditure incurred by employer in respect of club expenditure.

STEP 2 : Less : Amount incurred for official purpose

Less : Amount recovered from employee

BALANCE IF POSITIVE WILL BE TAXABLE

Note : Health Club, Sports facilities etc. provided uniformly to all classes of employees by the employer shall be EXEMPTED.

Note : Initial deposit / Fees for Corporate or institutional membership, where benefit doesn’t remain with the particular employee after the cessation of employment are exempt.

11. VALUATION OF PERQUISITE :CLUB EXPENDITURE

• Equity Shares issued by a company to its employees or directors at discount or consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value addition, by whatever name called.

• Value of such Equity Share shall be :-– When the share is listed on a Recognized Stock Exchange :

Average Price of opening & closing price of the share – on date of exercise of option.

– Where listed on multiple stock exchange :

Price on the Recognized Stock Exchange where the shares are mostly traded.

– Thinly or No traded Stock :

F.M.V. of the closing price of the share on any recognized stock exchange on the closest to the date of exercise of option & immediately preceding such date.

– Where the Equity Shares are unquoted :

F.M.V. = Value of the share,

as determined by Merchant Banker on the specified date / date of option

12. SWEAT EQUITY SHARES

• The amount of any contribution to an approved superannuation fund by the employer in respect of the assessee (employer), to the extent it exceeds ₹1,00,000/-.

• It is taxable in the year in which contribution is made.

13. EMPLOYER’s CONTRIBUTION TOWARDS APPROVED SUPERANNUATION FUND :-

• RESIDUAL HEAD. . . WHICH COVERS THOSE BENEFITS, AMMENITY, SERVICE, RIGHTS OR PRIVILAGE PROVIDED BY AN EMPLOYER WHICH IS NOT COVERED BEFORE ( IN 1 to 13 ).

• Mobile / Telephone as perquisite is not taxable anywhere in the Salary head or any other head.

• Any other benefit shall be valued @ Cost to employer.

14) etc. . . . .

• ENTERTAINMENT ALLOWANCE :– Only available to GOVERNMENT EMPLOYEE

– Least of the following shall be exempt :1. ₹ 5,000/-

2. 20 % of the Basic Salary

3. Actual amount received

DEDUCTION FROM SALARY INCOME

UNDER SECTION 16

• PROFESSIONAL TAX / TAX ON EMPLOYMENT :– Deduction is only available on the year of actual payment.

– If professional tax is paid by the employer, then it is first included and then deducted from the Gross Salary.

– There is no monetary ceiling on the amount of deduction. . . Only condition it should have been actually paid.

– e.g. : ₹ 2,500/- is the Professional Tax p.a.

– For 10 years no payment is made – no deduction in these 10 years

– 11th Year paid for ( 10 + 1 ) years -- - - - - Deduction = ₹ 2,500 * 11 years = 2,75,000

DEDUCTION FROM SALARY INCOME

UNDER SECTION 16

• Under this scheme, a stipulated sum is deducted from the salary of the

employee as contribution towards the fund and generally the employer also

contributes the same amount as contributed by the employee.

EMPLOYEES PROVIDENT FUND= RETIREMENT BENEFIT SCHEME

• Interest is earned on such investment which gets credited to the Employee’s Provident fund scheme A/C.

• Such Interest includes both the interest earned on Employer’s & Employee’s contribution.

• The accumulated amount of the scheme (i.e. Credit balance of the scheme) is paid to employee on his retirement or to the family members in the case of death

EMPLOYEES PROVIDENT FUND. . . .

TYPES OF PROVIDENT FUND

1.• STATUTORY PROVIDENT FUND• Set up under the provisions of Provident Funds Act, 1925

2.

• RECOGNIZED PROVIDENT FUND• PF to which Employee’s Provident Fund & Misc. provisions Act,

1952 applies.

3.• UNRECOGNIZED PROVIDENT FUND• When a P.F. is not recognized by the Commissioner of Income Tax.

• EMPLOYER CONTRIBUTION EXEMPTED

• EMPLOYEE CONTRIBUTION TAXABLE HERE(But Deduction u/s 80 is available)

• INTEREST EARNED Not treated as Income of the yearin which interest is credited.

• LUMP-SUM PAYMENT EXEMPT FROM TAX (upon the termination of service / on retirement)

STATUTORY PROVIDENT FUND

• EMPLOYER’s CONTRIBUTION EXEMPTED UPTO 12% OF “SALARY” BASIC + DA (UTOE) + COMMISSION

• EMPLOYEES CONTRIBUTION TAXABLE BUT DEDUCTIONI IS AVAILEBLE U/S 80 C

• INTEREST EXEMPTED up to 8.5% Rate of Intt.

• PAYMENT (LUMP-SUM) EXEMPTED IF :- EMPLOYEE LEFT THE JOB AFTER ATLEAST 5 YEARS OF SERVICE

DUE TO ILL HEALTH, DISCONTINUANCE OF EMPLOYERS BUSINESS OR REASONS BEYOND CONTROL

BALANCE OF RPF IS TRANFERED TO THE NEW EMPLOYER

RECOGNIZED PROVIDENT FUND

• EMPLOYER’S CONTRIBUTION EXEMPTED

• EMPLOYEES CONTRIBUTION No exemption BUT deduction U/S 80C.

• INTEREST Not taxable in the year in which interest is credited.

• LUMPSUM PAYMENT :– EMPLOYER’S CONTRIBUTION TAXABLE U/H SALARIES

– EMPLOYEES CONTRIBUTION EXEMPT

– INTEREST OF EMPLOYER’S CONT. TAXABLE U/H SALARIES

– INTEREST OF EMPLOYEE’S CONT. TAXABLE U/H OTHER SOURCES

UNRECOGNIZED PROVIDENT FUND

• If any individual receives any portion of his salary in arrears or in advance or receives profit in lieu of salary, he can claim relief in terms of section 89 :-

• STEP 1 : Calculate tax payable of the P/Y in which the arrears / advance salary is received.a) TAX on total income INCLUSIVE of additional salary

b) TAX on total income EXCLUDING additional salary

(A)

RELIEF UNDER SECTION 89

• STEP 2 : Calculate tax payable of that previous year to which the additional salary relates to.a) TAX on total income of that year INCLUDING additional Salary

b) TAX on total income of that year EXCLUDING additional Salary

(B)

Step 3 : [A-B]

Positive Negative

Relief YES NO

2009-2010

• Up to 150,000 nil

• 150,000 -300,00010%

• 300,000-500,000 20%

• 5,00,000 & above30%

E.g. Salary of Raju for P/Y 2008-09 was ₹20,000 per month. On 01-04-2009 his Salary was increased to ₹25,000 per month ; w.e.f. 01-04-2008. Calculate relief u/s 89(1) ?

Income of 2009-10 ₹ 25,000 * 12 = ₹ 3,00,000/-

Income of 2008-09 now due ₹ 5,000 * 12 = ₹ 60,000 /-

Income of 2008-09 ₹ 20,000 * 12 = ₹240,000/-

Income received in 2009 of 2008 ₹ 5,000 * 12 = ₹ 60,000/-

STEP 1 : Calculation of Tax of the P/Y in which the income is received

a) 3,00,000 + 60,000 = 3,60,000 - TAX 15,000 + 12,000 = 27,000 b) 3,00,000 + 0 = 3,00,000 - TAX 15,000 (15,000) A 12,000

• STEP 2 : Calculation of Tax of that P/Y to which the additional salary relates (2008-09)

a) 2,40,000 + 60,000 = 3,00,000 - TAX 15,000 = 15,000 b) 2,40,000 + 0 = 2,40,000 - TAX 9,000 = (9,000) B 6,000

• STEP 3 : [A-B] ₹ (12,000 – 6,000) ₹ 6,000/-

Since the amount is Positive ; Relief u/s 89(1) will be granted

METHOD OF COMPUTATIONINCOME UNDER HEAD “SALARIES” ₹ ₹

1 Basic Salary ( ₹______ X months) XXXXX

2 Dearness Allowances XXXXX

3 Allowances:

a) House Rent Allowances (Note no. #)

Received XXXX

Less : Exempt (xxxx)

XXXX

4 Perquisites (Note #)a)__________b)__________

xxxxxxxx XXXX

X

5 Retirement Benefits: (Note #)Received Less : Exempt

xxxxxx XXXX

X

METHOD OF COMPUTATION

INCOME UNDER HEAD “SALARIES” ₹ ₹

6 GROSS SALARY ( 1+2+3+4+5) XXXXX

7 Less : Deduction u/s 16

a) Professional Tax xxxx

b) Entertainment Tax xxxx XXXXX

8 INCOME UNDER HEAD SALARIES (6-7) XXXXX

Income under head salaries

Education

Transcript of Income under head salaries