CONTENTS

•Introduction
•Meaning Of Salary
•Different Forms Of Salary
•Basis Of Charge
•Meaning Of Allowances
•Types Of Allowances
•Meaning Of Perquisites
•Types Of Perquisites
•Benefits Of Perquisites
 INTRODUCTION

• Salary income refers to the compensation received by an

employee from a current or former employer for the
execution of services in connection with employment.
• Income is taxable as salary under Section 15 only if an
employer-employee relationship exists between the payer
and payee.
 MEANING OF SALARY

Income from salary is the income or remuneration

received by an individual for services he is rendering or a
contract undertaken by him. This clause essentially
assimilates the remuneration received by a person for
the services provided by him under the contract of
employment.
 DIFFERENT FORMS OF SALARY

• Leave Salary
• Fees & Commission
• Bonus
• Death-cum-retirement
• Pension
• Annuity
 BASIS OF CHARGE

• Salary taxable on due basis

• Advanced Salary
• Arrears of Salary
 MEANING OF ALLOWANCES

Payment in cash made by the employer to his employees

monthly, other than salary, is called an allowance. It is a
fixed sum of money paid regularly in addition to salary
for the purpose of meeting some particular requirement
connected with the services rendered by an employee.
 TYPES OF ALLOWANCES

• Dearness Allowance
• Medical Allowance
• Hill Allowance
• Overtime Allowance
• Education Allowance
• Holiday Allowance
 MEANING OF PERQUISITES

Perquisites are profits that come in addition to an

employee’s regular salary. Perquisites in salary can
be as simple as company-sponsored
accommodation, fuel reimbursement, etc., or may
include interest-free loans, medical facilities, etc.
 TYPES OF PERQUISITES

• Taxable Perquisites: For Ex- supply of gas, water & electricity, rent-
free accommodation, professional tax, reimbursement of medical
expenses, free meals, gift value exceeding Rs.5,000, club & gym
membership, etc.

• Tax- exempted Perquisites: For Ex- travel allowance,

reimbursement for company-sponsored computer/laptop provided
for official use, provision for medical aid, use of health club & sports
club, refreshment offered during office hours, telephone lines, etc.
 BENEFITS OF PERQUISITES

• Improve employee productivity

• Increase employee loyalty
• Increase employee retention
Shruti Patil
Afsha Khan
Srishty Soni
Amrita Tigga