Income from salary Meaning Characteristics Advantages & disadvantages Salary

3.  Income can be charged under this head only if an
employer, employee relationship.Salary includes, wages
,basic,dearness allowance , annuity gratuity , advancs
of salary allowances, commission perquisites in lieu of
or in addition to salary and retirement benefits .the
aggregate of the above incomes, after exemptions
available ,is knows as Gross salary and this is charged
under the head income from salary

4. CHARACTERSTICS OF
INCOME FROM SALARY
Relationship of employer of employee
Similarity between salary of wages
Salary from more then one employer
Surrender of salary
Family person
Salary of person from a forieng employer

5. ADVANTAGES/DIS ADVANTAGES
INCOME FROM SALARY
ADVANTAGES DISADVANTAGES
 Salary employee receive an
equal portion of their annual
compensation every week
 Starting salary often begin for
enough above hourly rates to
be able to afford a down
payment on a house 0r car
 Many salaried employee are
not eligible for overtime pay
no matter how many extra
hours they may work.
 May salaried workers are on-
call every day all week if an
hourly employee cannot work
salaried employee often have
to fill those hours themselves
 Miss benchmarks and you
lose bonuses

6. SALARY

8. PROBLEMS
 Mr. Abhi is an employee in a limited at Mumbai. He gives you the following
information for the P.Y 2021-22
 A) basic salary Rs 8000 per month
 B) D A (enter into KB) Rs.2000p.m.
 C) bonus (equal to two month basic salary)
 D) project allowance Rs 800 Pm
 E)travelling allowance Rs 4000 p m
 F) house rent allowance Rs 2000p.m (rent paid Rs 18000)
 G) contribution to RPF by company and by him at 15% salary
 H) interest credited to RPF by balance at 8. 50%p a amount to Rs 1,400
 He paid a professional tax of Rs 1,500 during the year. Compute the income from
salary for the A,Y. 22-23
 A) he opts to be taxed U/S 115 BAC
 B) he does not opt to be taxed U/S 115 BAC


9. Computation of income from salary
2022-23
Basic salary (8000x12) 96000
D A (2000x12) 96000
Bonus (8000x12) 16000
Project allowance (800x12) 9600
Travelling allowance exempt
HRA:
Salary=B-DA (if) 96000+24000=1.20.000
hra recevid 2000x12 =24000 24000 18000
(-) exempted less of riceved 6000
1, actual HRA =24000
2, rent paid 10% of salary
18000-12000 =6000
3, salary 50% of 1.20.000 = 60 000
Contribution of RPF 15% of salary 120000 3600
PRATICULER OLD
NEW
96000
24000
16000
9600
Exempt
24000
3600

10. Intrest Cr RPF =95%
gross salary
Less deducation U/S 16
1, standard deduction 50000
2, profaction tax deduction 1500
income from salary
Exempt
-
173. 200
Exempt
54500
115700
173.200 167.200

11. YOU