Income Under Head Salary Section 15 to Section 17

Income Under Head Salary Section 15 to Section 17

Here all the Income considered which arise during the course of employment in relation to employee and employer. I.e Basic Salary + Allowance + Commission (relation to salary) + Gratuity + Pension + Leave en-cashment + Retirement Compensation + Voluntary Retirement Compensation + Provident Fund + Perquisites.

Deduction Under Section 16

• Entertainment Allowance
• Employment / Professional Tax

Standard Deduction

• 50,000 (Rs. 15,000 for medical reimbursement and Rs. 19,200 for transport allowance)

Limit for Calculations of Salary

                Gratuity                               Rs. 20 Lakh

                Pension                                 Rs. 15000 p.m

                Leave Encashment              Rs.3 Lakh

                VRS                                       Rs 5 Lakh

                Provident Fund                    Rs 1.5 Lakh

                HRA                                      50% /40% depending of cities