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Definition of Salary [Section 17(1)]

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According to section 17(1) salary includes the following amount received by an employee from his employer, during the previous year:

(i)             Wages

(ii)           Any annuity or pension ( family pension received by heirs of an employee is taxable under income from other sources)

(iii)         Any gratuity

(iv)         Any fees, commission, perquisites or profits in lieu of or in addition to any salary or wages

(v)           Any advance of salary

(vi)         Any payment received by an employee in respect of any period of leave not availed of by him

(vii)      The annual accretion to the balance at the credit of an employee participating in a recognized provident fund to the extent to which it is chargeable to tax under Rule 6 of part A of the Fourth Schedule

(viii)    The contribution made by the central government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in Section 80CCD

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