Salary income refers to the compensation that an employer provides to an employee in lieu of the services provided by the employee in relation to the employment contract. The income received is considered as salary and taxed under section 15 only if there is an employer-employee relationship between both parties. Salary income can be received in the form of - Wages.
- Annuity/pension
- Gratuity
- Fees/Commission
- Salary in Advance
- Leave encashment
- Transferred balance in a provident fund to the point it is taxable.
- Central government's contribution to an employee's account under the pension scheme.