Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
In the article, we will discuss chargeability of tax on a salaried person by the Indian Government and various other things related to income tax.
The money which you earn from different kind of sources is taxed differently. So in case you are a salary earner, your salary income to be taxed will be calculated in a different way. The term “Salaries” includes remuneration in any kind of form for personal service, under an orally expressed or implied contract of employment or service. Section 17 of the Income Tax Act[1] defines salary to include:-
Therefore “salary” includes basic salary, encashment of leave salary, advance salary, arrears of salary, various allowances such as dearness allowance, house rent allowance, conveyance allowance, etc. and also includes perquisites by way of free accommodation, free vehicle, free schooling for children of employees, etc.
When you as a beginner start your job, try to reach out to your payroll or Human Resource (HR) department and get your Salary details or Pay Slip / Salary Slip. Through the mentioned, you will get a major idea of the important components of your salary and how much amount of tax will be deducted from your salary based on them.
Similar Read: Income Tax Refund for Salaried – A Comprehensive Guide.
The following are the most essential conditions for income to be treated as salary income:-
Income Tax is the amount of money you are liable to pay in the form of tax to the government which depends on the tax slab you fall under depending on your income. In order to calculate the exact amount of your tax, compute your exact taxable income. After which final tax payable is calculated by applying the applicable tax rates which are in force and after that deducting the taxes which are already paid in the form of TCS/TDS or advance tax from the tax due amount.
Salaried individuals are one of the classes of people that pay maximum taxes in our country. This often leads to disappointment among salaried individuals. Of course, no one could be happy knowing that almost half of their hard-earned money has been deducted in the form of taxes? But after following the right tax planning[2] strategies, it is possible to save your income from tax liabilities. Following are the few ways which can help you save taxes as a salaried individual.
Apart from considering all the above tax saving options, consult Enterslice, which has a team of professional tax planner to guide you and file your income tax returns before the due date.
Also, Read: All About Salary Income, Perquisites, and Allowances under the Income Tax Act.
Experiencing the loss of a loved one is one of the deepest emotional hardships a person can fac...
On January 16, 2025, the Reserve Bank of India (RBI) released the list of Non-Banking Financial...
Over the decades, the Oil and Natural Gas Corporation (ONGC) has been a key pillar in the portf...
The Reserve Bank of India, on April 11, 2025, posted a Press Release No. 2025-2026/96 on their...
Hong Kong is widely recognized as a leading global business hub, known for its free-market econ...
Are you human?: 7 + 8 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Section 80TTA of the Income Tax Act provides the privilege to claim deductions on savings accounts deposits that ar...
14 Apr, 2020
Income Tax is a form of Direct Tax levied by the Indian Government on the very source of income generated in a fina...
30 Mar, 2024