STUDY NOTES

INCOME FROM SALARIES (sections 15 to 17) SALARIES -  Meaning : Any remuneration   paid by an employer to his employee in consideration of his service is called salary. It includes the monetary value of those benefits and facilities provided by the employer which are taxable. Salary includes: (i) wages; (ii) any annuity or pension;  (iii) any gratuity; (iv) any fees, commission, perquisites or profit in lieu of or in addition to any salary or wages; (v) any advance or salary, but not loan for purchasing a car, scooter or a house, etc. (vi) any payment received by an employee in respect of any period of leave not availed of by him;   [Note : Encashment of earned leave at the time of retirement  whether on superannuation or otherwise is exempt subject to the provision of Sec. 10(10AA).]   (vii) the annual accretion to the balance at the balance at the credit of any employee participating in a recognised provident fund i...

INCOME TAX ACT 1961 1. Direct ( a. Income tax , b. Corporate tax) 2. Indirect    (G.S.T. July 2017)                    Meaning:   Income tax is an important direct tax. It is a prominent and most significant source of revenue of the government. The government needs money to maintain law and order in the country; safeguard the security of the country from foreign powers and promote the welfare of the people.  Every person, whose taxable income for the previous financial year exceeds the minimum taxable limit is liable to pay income tax during the current financial year on the income of the previous financial year at the rates applicable during the current financial year.   In India this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the losses sustained by the government on account of the Military Mutiny of 1857. The Income Tax Act 1961. (1) Tax-Ex...