ABSTRACT

INCOME FROM SALARIES

Subject: Taxation Law-I
Income earned by an individual can be broadly classified under 5 distinct heads and taxed
according to the Income tax rules governing them. The 5 heads of income are Salary Income,
Income from house property, Business or Professional Income, Capital Gains and Other
Income.
Section 15 to Section 17 of Income Tax Act, 1961 deals with Income from Salaries. Salary
means remuneration paid to the employee by the employer for the services rendered by him
during a period of time. It is taxed on due basis or receipt basis, whichever is earlier. Salary
comprises of 5 components namely basic salary, fees, commission and bonus, allowances,
perquisites, retirement benefits.
In this project I would like to study the concept of Income from salaries with the help of some
judicial decisions.
L. Ashish Kumar,
201108, VII Semester.