Section 17 ITA 1961 defines 'SALARY' for purposes of taxation. It includes:
Answer & Solution
Correct answer: A.
1. Section 17(1) Income Tax Act 1961 defines 'SALARY' broadly to include: (i) wages; (ii) annuity or pension; (iii) gratuity; (iv) fees, commissions, perquisites or profits in lieu of or in addition to any salary; (v) advance of salary; (vi) leave salary; (vii) annual accretion to PF (taxable portion); (viii) transferred balance in PF; (ix) contributions to NPS.
2. Section 17(2) defines PERQUISITES: rent-free accommodation, concessional rent, free services, etc.
3. Section 17(3) defines PROFITS in lieu of salary.
4. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 17_
Related questions
Section 80GG ITA 1961 provides DEDUCTION for HOUSE RENT PAID by salary earners NOT receiviDOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) under Section 90 ITA 1961:Section 9 ITA 1961 prescribes when INCOME is DEEMED to ACCRUE OR ARISE in India for non-reSection 79 ITA 1961 restricts CARRY FORWARD of LOSSES of a COMPANY in case of CHANGE in BESections 73-75 CGST Act 2017 prescribe procedures for tax DEMANDS where TAX has been NOT PSection 5 IGST Act 2017 levies IGST on:Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from a single person in rThe DIRECT TAX VIVAD SE VISHWAS ACT 2020 was enacted to: