Income tax is the tax you pay on your income.

 Income Tax is levied on a person who was in

India for 182 days during the previous tax year or the person who was in India for at least 60
days during the previous tax year and for at least 365 days during the preceding 4 years will be
taxed.
The meaning of the term ‘s alary’ for purpos es of income tax is much w ider
than w hat is normally unders tood. Every payment made by an employer to his
employee for s ervice rendered w ould be chargeabl e to tax as income from
s alaries . The term ‘s alary’ for the purpos es of Income- tax A ct, 1961 w ill
include both monetary payments (e.g. bas ic salary, bonus , commis s ion,
allow ances etc.) as w ell as non-monetary faciliti es (e.g. hous ing,
accommoda tion, medical   facili ty, interes t free loans   etc.
Employer-employee relationship:
Before an income can become chargeable under the head ‘salaries’, it is vital that there
should exist between the payer and the payee, therelationship of an employer and an employee.
Consider the following examples:
a) Sujatha, an actress, is employed in Chopra Films, where she is paid a monthly
remunerat ion of 2 lakh. S he acts in various films produced by various
producers . The remuneration for acting in such films is directly paid to Chopra Films
by the different producers . In this cas e, 2 lakh w ill cons titut e s alary in the
hands of S ujatha, s ince there relations hip of employer and employee
exis ts betw een   Chopra F ilms and S ujatha.
b)  In the above example, if Sujatha acts in various films and gets fees from different
producers , the s ame income w ill be chargeable as income from
profes s ion s ince the relationship of employer and employee does not exist between
Sujatha and the film producers .