DIFFERENT MEANINGS

OF 'SALARIE
Rent-free House House Rent
computation oftarable
income or Allowance
For head salaries Concession in rent
under the
Basic Salary (excluding advance 1. Basic Salary.
1.
1. Basic salary
or wages. 2. Dearness Allowance if th
or
2. Advance salary. arrear of salary received). of employment so provide
3. Arrears of salary. Dearness Allowance if it is taken taken into account for ret
2.
4. Annuity or pension. into account for retirement benefits. (Excluding all
5. Gratuity.
6. Fees, Commission,
Bonus. benefits. lowances, bonus or per-
7. Allowances including Dearness
3. Taxable Allowances. and all extras)
Allowance. 4. Bonus. 3. Commission based on f
8. Profits in lieu of salary 5. Commission. centage of turnover achi
9. Perquisites. 6. Any other payment in cash. the employee.
10. Excess contribution to R.P.E by (Excluding dearness allowance
employer over 12% of salary. not entering into retirement
11. Excess interest received from benefits of the
R.PF. over 9.5% rate of interest employee,
will be taxable. employer's contribution to R.P.F.,
2. allowances exempt from tax and
Taxable portion
balance to R.P.E.
of transferred value of perquisites.)
e: Dearnmega Peu
ENT MEANINGS OF SALARIES FOR DIFFERENT PURPOSEES
House Rent
Allowance
Qualifying Amount of Entertainment Determination of salary of
Contribution to R.P.R 50,000 regarding taxability of per-
50,000
Allowance regarding 72XiiXc)
quisites under sec. 17(2XiiiXc)
ce 1. Basic Salary. 1. Basic Salary.
2. Dearmess Allowance if the terms Basic Salary ex-
2. Dearness Allowance if the termns Basie Salary, Dearness Al-
ofemployment so provide, ie, it is of employment so provide, i.e, it is | clusive of any lowance, All other taxable al
en taken into account for retirement taken into account for retirement |allowance,
benefit or other lowances,
benefits received in
t| benefits. (Excluding all other al benefits. cash, Bonus, Commission, etc.
(Excluding all other al- | perquisite. and all monetary payments in-
lowances, bonus or perquisites lowances, bonus or perquisites cluded in gross salary after allow-
and all extras) and all extras)
3. Commission based on ing deductions ws 16. For this
fixed per-3. Commission based on fixed per- purpose salary will not include
centage of turnover achieved by centage of turnover achieved by perquisites not received in cash.
the employee. the employee.