Employee - Employer relationship
An employment relationship where the employee works under the control and direction of the employer, qualifying their earnings as salary.
Taxable Salary
Income received by an individual from an employer which is subject to income tax.
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Direct Tax CA
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Employee - Employer relationship
An employment relationship where the employee works under the control and direction of the employer, qualifying their earnings as salary.
Taxable Salary
Income received by an individual from an employer which is subject to income tax.
Salary Forgone
When an employee gives up a portion of their salary, it is still considered taxable income.
Contract 'of' Service
A type of employment where the individual works for an employer, rendering services as an employee.
Contract 'for' Service
A business relationship where one party contracts another to perform services, taxable under PGBP.
Gross Salary
The total salary income before any deductions such as taxes or other allowed exemptions.
Net Taxable Salary
The salary amount after all deductions are made under the applicable income tax laws.
Exempt Amount
The portion of income or benefits that is not subject to tax under specific provisions of the Income Tax Act.
Provident Fund (PF)
A retirement savings scheme in which both employer and employee contribute, with certain tax exemptions.
VRS (Voluntary Retirement Scheme)
A scheme that offers financial incentives to employees who voluntarily choose to retire early.
Perquisite
Additional benefits provided by an employer to an employee, such as housing, vehicle, or medical facilities.
House Rent Allowance (HRA)
An allowance given to employees to cover the cost of renting a home, with states conditions under which it can be exempted from tax.
Leave Travel Concession (LTC)
Tax exemption on expenses incurred during travel, subject to certain conditions and limits.
Entertainment Allowance
An allowance provided for entertainment expenses which is fully taxable for employees, but may have deductions available for government employees.
Standard Deduction
A fixed deduction allowed from income to reduce the taxable income, beneficial in the computation for salary earners.
Specified Employee
An employee who meets certain criteria, including salary or interest in the employer's business, leading to taxation on certain perquisites.
Professional Tax
A tax levied by state governments on professions, trades, and employment income, with allowable deductions applicable.
Salary Income under u/s 115BAC
Salary income computed as per the provisions stated in section 115BAC of the Income Tax Act, indicating defaults and benefits under the new tax regime.