What is Tax-Free Salary? In case of Tax-Free Salary, is the amount of income tax paid by the employer required to be included in the taxable income from Salary?

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• What are the different types of income that qualify as Salary under the Income Tax Act?

  As a salaried person, you may be getting income in many forms. For the purpose of tax, the incomes that qualify as Salary are listed below: Salary: This is generally a monthly remuneration extended by the employer to the employee in exchange for the ...

• My employer paid me Salary for a part of the financial year but my services were rendered for the full year. Do I need to pay tax on the entire amount of Salary due to me from the employer?

  Any Salary due from an employer or a former employer to an employee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’ (As per Clause(a) of section 15). In other words, the Salary accrued or which becomes ...

• The income received by me from my employer does not fit into any of the items specified in Section 15 and 17 of the IT Act. In that case, is my income still taxable as Salary income?

  Section 15 of the Income Tax Act contains all the conditions in which the income received or accrued can be classified under ‘Salary’ for tax treatment. It also tells us how the tax thereon should be paid. Section 17 defines what incomes will be ...

• I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include this tax amount as a part of my Salary income?

  No. The I-T Act provides option to the employer to pay tax on the non-monetary perquisites. However, by virtue of Section 10(10CC), tax paid by employer (on behalf of employee) on non-monetary perquisites will be exempt from tax in the hands of ...

• Is it necessary for my employer to deduct income tax from my Salary?

  Yes. It is his duty as per law to deduct tax from the income paid to you by him. This deduction is called TDS (Tax deducted at source). TDS is deducted each month by employers based on tax projections declared by the employee at the beginning of each ...