SALARY PRICING PLAN

SALARY PLAN

As per section 17(1) salary includes wages, pension, annuity, gratuity, perquisites, allowances, fees or commission in addition to salary or wages.

India’s Income tax is divided into 5 sources or heads:

Forms ITR-1 and ITR-2 and ITR-3 contain the schedule for computation of income under the head “salary”.

As per section 17(1) of the Income-tax act, 1961 “Salary” is defined in the form of an inclusive list:

See the chart below to have a big picture of the contribution of salary income in Gross total income of all other heads of Income tax.

Gross total income means the income before chapter VIA deductions.

Salary income means the income filed by taxpayers under the salary head of that particular Assessment years.

Percentage figure shows the ratio between salary income to Gross total income in particular Assessment years.