Income Tax Rules-Income Included under the Head Salaries. It is important to know what is the income that is chargeable under the head Salaries while computation of Income Tax. We will discuss the Definition of Salary, Perquisite and Profit in Lieu of Salary as per Section 17.
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Rule.5.1 Income Chargeable under the Head "SALARIES"
(1) 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;
- (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him.
- (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.
