Tips to Employees: Whether Form Part of Salary or Perquisite and Profits In Lieu of Salary & Liable to TDS?

Advocate Akhilesh Kumar Sah TIPS TO EMPLOYEES: WHETHER FORM PART OF SALARY OR PERQUISITE AND PROFITS IN LIEU OF SALARY & LIABLE TO TDS? Questions have arisen many a time regarding whether the particular payment/ receipt falls under the ambit of ‘salary’. Section 15 of the Income Tax Act, 1961(hereinafter referred to as the Act) deals with the changeability of salary and section 17 defines prerequisite and profits in lieu of salary. There must be an employee-employer relationship to constitute a payment/receipt in question under the ambit of ‘salary’. There does not exist employe...