salary income

Indian tax rulings favouring salaried & key takeaways for salaried employees!

Income Tax - The Indian income tax system is known to be complex and challenging to navigate for many taxpayers. However, over the years, several income tax rulings/amendments have come in favor of salaried employees and small business owners. These rulings/amendments have provided clarity on various tax-related matters and helped taxpayers understand...

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Accommodation deemed to be provided at a concessional rate – Budget 2023

Income Tax - Accommodation shall be deemed to have been provided at a concessional rate if the value of the accommodation computed in the prescribed manner exceeds the rent recoverable from, or payable by, the assessee....

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Budget 2023- Individual Tax Slabs For Financial Year 2023-24

Income Tax - Highlights of Budget 2023 For Direct Taxation- Mainly For Understanding The Computing The Individual Tax Liability- Tax Slab For The Financial Year 2023-24 The Union Budget 2023 was presented by the Finance Minister, Nirmala Sitharaman, on 1st February 2023. The Budget aimed to address the ongoing challenges and fortify the nation for the...

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Clarity on Standard Deduction as proposed in Union Budget 2023

Income Tax - During her union budget 2023 speech on 01st February, 2023 Honorable Finance Minister Smt. Nirmala Sitharaman Ji has proposed to extend the benefit of standard deduction in the new income tax regime for salaried class. Section 16 of the Income Tax Act, 1961, Standard deduction:  As per the provisions of section 16 (ia) there is […...

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Budget FY 23-24: Standard deduction benefit INR 52,500 or INR 50,000

Income Tax - Standard deduction of ₹50,000 will be available to salaried class and the pensioners and standard deduction of ₹15,000 or 1/3rd of the family pension whichever is lower, will be available to family pensioners, irrespective of any level of income. Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget for ...

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Rent Concession on house provided to assessee by employer is perquisites

Income Tax - Perquisites includes the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer....

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Advisory on Tax Evasion by Salaried Taxpayers

Income Tax - Cautionary Advisory on Reports of tax evasion by under-reporting income or inflating deductions/Exemptions by salaried taxpayers. The Income Tax Department has from time to time issued advertisements requesting taxpayers to report their correct income in their Income Tax Returns....

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Standard deduction available on pension from former employer: CBDT

Income Tax - The Central Board of Direct Taxes (CBDT) has clarified that the pension received by a taxpayer from his former employer is taxable under the head Salaries. The Finance Act, 2018 has amended Section 16 of the Income–tax Act, 1961...

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BCAS represents on wrong TDS filing return due date in recent Circular

Income Tax - BCAS made a Representation to CBDT regarding error in stating due date for Filing of Quarterly TDS Statements for Financial Year 2016-2017 in Circular 1/2017. ...

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SBI Interest Rates on 1st April, 2011- For perquisite valuation

Income Tax - State Bank of India: Interest Rates on 1st April, 2011- For the purpose of computing perquisite valuation Interest rates as on 1st April, 2011 on various loans in Personal Segment advances are as under – ...

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Income of Company cannot be assessed under the head ‘salary’

Ducere Technologies Private Limited Vs DCIT (ITAT Hyderabad) - Since the assessee is a company as is established by the 143(1) intimation, question of assessing its income under the head ‘salary’ does not arise. Impugned order is, therefore, liable to be set aside....

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Accountant not become technical person for writing Accounts of 2 firms

Rajendra Kumar Chowdhary Vs ITO (ITAT Lucknow) - Salary of accountant cannot be treated as professional service for managing books of two firms to invoke TDS under section 194J...

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TDS not deductible on Uniform Allowance given to Employees for use while on duty

Commissioner of Income Tax (TDS) Vs Oil And Natural Gas Corporation Ltd. (Gujarat High Court) - Commissioner of Income Tax (TDS) Vs Oil And Natural Gas Corporation Ltd. (Gujarat High Court) It is observed that the uniform given to an employee for using the same during his duty hours is presumed to be used for the purpose of employment only. When there was a circular of CBDT enabling the assess...

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Notional Interest on Security Deposit paid by employer for accommodation of its employee – perquisites?

CIT Vs Shankar Krishnan (Bombay High Court) - CIT Vs Shankar Krishnan (Bombay High Court) Whether Notional Interest on Security Deposit paid by employer for accommodation of its employee will also be included while calculating perquisites. BRIEF FACTS: 1. The Assessee is a salaried employee with McKinley & Company Inc., India. The Assessee ...

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Interest deduction from Salary cannot be claimed for advancing advancing interest free loans to employer company

Mukesh Gupta Vs DCIT (ITAT Bangalore) - In the instant case, there is no relation whatsoever between the interest expenditure from a mortgaged loan and the payment received for rendering certain services. Advancing interest free loans to the employer company cannot be a ground for claiming deduction of interest expenditure from the salary...

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Instructions regarding Grant of HRA to Central Government employees

No.2/4/2022-E.IIB - (30/12/2022) - No.2/4/2022-E.IIB Government of India Ministry of Finance Department of Expenditure *** North Block, New Delhi. Dated the 30th December, 2022. OFFICE MEMORANDUM Subject: Compendium of Instructions regarding grant of House Rent Allowance to Central Government employees -regarding The Department of Ex...

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TDS & Tax on Salary | Section 192 | FY 2021-22 | AY 2022-23

Circulars No 04/2022 - (15/03/2022) - CBDT issued Income Tax Circular No. 04/2022 on 15th March 2022 and explained all provisions related to deduction of Tax At Source (TDS) on Salary or Income Tax Payable on Salary for the Financial Year 2021-22 / Assessment Year 2022-23.  GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE...

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CBDT revises Form No. 12BA, Part B to Form 16, Annexure II to Form No. 24Q

Notification No. 15/2021-Income Tax [G .S. R. 170(E)] - (11/03/2021) - CBDT revises Form No. 12BA (Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof), Part B to Form 16 (Details of Salary Paid and any other income and tax deducted) and Annexure II to Form No. 24Q vide Notification No. 15/20...

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TDS and Tax on Salary | Section 192 | FY 2020-21 | AY 2021-22

Circular No. 20/2020 - (03/12/2020) - CBDT issued Income Tax Circular No. 20/2020 dated 03rd December 2020 which contains provision for TDS on Salary for the Financial Year 2020-21 under Section 192 of the Income-Tax Act, 1961. Text of the Circular is as follows:- GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL B...

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Clarification regarding relaxation of purchase of air tickets from authorized Travel Agents for LTC

Office Memorandum No. 43020/2/2016-Estt (A.IV) - (19/02/2020) - Procedure for booking of air-tickets on LTC and to say that as per the extant instructions, whenever a Government servant claims LTC by air, he/she is required to book the air tickets directly from the airlines (Booking counters, website of airlines) or by utilizing the services of the authorized tr...

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Recent Posts in "salary income"

Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E

Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y. 2023-24 and A.Y. 2024-25 Salary arrears are understood as unpaid wages of the previous period accrued in the current year. There may be a subsequent revision of the employee’s wages or a disputed wage which is then issued by the employer. What […]...

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Posted Under: Income Tax |

Indian tax rulings favouring salaried & key takeaways for salaried employees!

The Indian income tax system is known to be complex and challenging to navigate for many taxpayers. However, over the years, several income tax rulings/amendments have come in favor of salaried employees and small business owners. These rulings/amendments have provided clarity on various tax-related matters and helped taxpayers understand...

Read More
Posted Under: Income Tax |

Accommodation deemed to be provided at a concessional rate – Budget 2023

Accommodation shall be deemed to have been provided at a concessional rate if the value of the accommodation computed in the prescribed manner exceeds the rent recoverable from, or payable by, the assessee....

Read More
Posted Under: Income Tax |

Budget 2023- Individual Tax Slabs For Financial Year 2023-24

Highlights of Budget 2023 For Direct Taxation- Mainly For Understanding The Computing The Individual Tax Liability- Tax Slab For The Financial Year 2023-24 The Union Budget 2023 was presented by the Finance Minister, Nirmala Sitharaman, on 1st February 2023. The Budget aimed to address the ongoing challenges and fortify the nation for the...

Read More
Posted Under: Income Tax | ,

Clarity on Standard Deduction as proposed in Union Budget 2023

During her union budget 2023 speech on 01st February, 2023 Honorable Finance Minister Smt. Nirmala Sitharaman Ji has proposed to extend the benefit of standard deduction in the new income tax regime for salaried class. Section 16 of the Income Tax Act, 1961, Standard deduction:  As per the provisions of section 16 (ia) there is […...

Read More
Posted Under: Income Tax |

Budget FY 23-24: Standard deduction benefit INR 52,500 or INR 50,000

Standard deduction of ₹50,000 will be available to salaried class and the pensioners and standard deduction of ₹15,000 or 1/3rd of the family pension whichever is lower, will be available to family pensioners, irrespective of any level of income. Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget for ...

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Posted Under: Income Tax | ,

बजट 2023 से मिडिल क्लास तथा वेतन भोगी वर्ग की उम्मीद

केंद्रीय वित्त मंत्री निर्मला सीतारमण 1 फरवरी 2023 को आम बजट प्रस्तुत करेंगी यह मोदी सरकार के दूसरे कार्यकाल का अंतिम पूर्ण बजट होगा...

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Posted Under: Income Tax |

Investment declaration to Employer in form 12BB – TDS on Salary

An investment declaration or Tax declaration is required to be submitted at the beginning of the year. This is required to be submitted by an employee to their employer for the investment they have done during the year. Initially, an employee has to submit some estimates of the current and future investments, and later proof […]...

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Posted Under: Income Tax |

Arrears of Salary – Taxability & Relief under Section 89(1)

What is arrear of salary? Arrears of salary refer to the outstanding salary of the previous period received during the current year. Arrears may be received due to a revision in the salary of an employee from a retrospective effect for the past year(s), disputed salary released later on by the employer, receipt of unpaid salary […...

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Posted Under: Income Tax |

Significance of Form No 12BB at the time of submitting Income Tax return

All the salaried Persons and pensioners have to submit their Income Tax Final Statements either in February or March 2023 as per the requirements of Income Tax Act and the relevant statue and regulations related with them. Then a significant question arises about the significance of Form No: 12 BB. Following are some of the […]...

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Posted Under: Income Tax |

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