Income from Salaries (15 marks)
Computation of Income from Salary
Section-17(1)
"Basic Salary
" Dearness Allowance
" Entertainment Allowance
" Bonus
" Commission
" House Rent Allowance
Less: Exemption u/s-10(13)(A), Rule-2(a)
" Children Education / Hostel Allowance
Less: Exemption u/s-10(14)
" Any other taxable allowance
" Add: Employer's contribution to recognized
provident fund in excess of 12% of salary
(Basic + DA + Commission in fixed %)
"Add: Interest credited to recognized provident
fund in excess of 9.5%
"Add: Perquisites u/s-17(2)
(a) Value of rent free accommodation provided
by employer at free of cost u/s-17(2) (0),
Rule-3(1)
(b) Value of rent free accommodation provided
by employer at concessional rate u/s-17(2) (ii)
(c) Benefits given to specified employee u/
s-17(2)(i)
(d) Employee's obligation discharged by
employer u/s-17(2) (iv)
Computation of Income from Salary
Section-17(1)
"Basic Salary
" Dearness Allowance
" Entertainment Allowance
" Bonus
" Commission
" House Rent Allowance
Less: Exemption u/s-10(13)(A), Rule-2(a)
" Children Education / Hostel Allowance
Less: Exemption u/s-10(14)
" Any other taxable allowance
" Add: Employer's contribution to recognized
provident fund in excess of 12% of salary
(Basic + DA + Commission in fixed %)
"Add: Interest credited to recognized provident
fund in excess of 9.5%
"Add: Perquisites u/s-17(2)
(a) Value of rent free accommodation provided
by employer at free of cost u/s-17(2) (0),
Rule-3(1)
(b) Value of rent free accommodation provided
by employer at concessional rate u/s-17(2) (ii)
(c) Benefits given to specified employee u/
s-17(2)(i)
(d) Employee's obligation discharged by
employer u/s-17(2) (iv)
