How is salary defined in Indian tax law?
Salary is defined by Income Tax Act to include:
- Wages
- Pensions and annuities
- Gratuities
- Advance of salary
- Any fee, commission, perquisites, or profits in lieu of or in addition to salary or wages
- Any encashment of leave salary
- Any amount of credit to the provident fund of an employees to the extent that it is taxable
- “Dearness allowance” – a type of allowance provided for the higher cost of living in some cities or states. Normally, it is given to governmental employees.
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