What is Salaries? What are Deductions from salaries? Section 15 and 16 of Income Tax Act 1961
Salaries and Deductions from salaries are defined under section 15 and 16 of Income Tax Act 1961. Provision under these sections are:
Section 15 of Income Tax Act "Salaries"
The following income shall be chargeable to income-tax under the head "Salaries"-
(a) any salary due from an employer or a former employer
to an assessee in the previous year, whether paid or not;
(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.
Explanation 1.-For the removal of doubts, it is hereby
declared that where any salary paid in advance is included
in the total income of any person for any previous year it
shall not be included again in the total income of the
person when the salary becomes due.
of Income Tax Act "Deductions from salaries"
The income chargeable under the head "Salaries" shall be
computed after making the following deductions, namely :-
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
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