Salary, perquisite and profits in lieu of salary are defined by which section?
ASection 17
BSection 15
CSection 16
DSection 14
Answer & Solution
Correct answer: A. Section 17
1. Charging, deduction and definition are handled by three different sections.
2. Section 17 defines salary, perquisite and profits in lieu of salary.
3. Salary itself is defined in section 17(1).
4. Section 15 fixes the basis of charge and section 16 lists the deductions.
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.3_
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