From the financial year 2020-21, dividends on shares are now taken as income in my hands. So in Financial Year 2019-20, it’s the below para. This is a change from the change made few years back when dividends on stocks that I got were not counted as income upto Rs.10 lac per year for me. […]
Variety Dividends on Shares Read More »
As the name suggests, this covers any and everything that I earn under the sun (and the clouds) that doesn’t come under any other category. So this is really a residuary head.
What is Income from Other Sources Read More »
My employer is required to issue me a salary certificate in Form 16 every year if my salary exceeds taxable limits, or where my tax has been deducted on salary. So this will spell out what my salary is, and I just take this for the purpose of my tax return. If somehow I am
How do I know my salary Read More »
Spends by employer on my medical treatment, or taking a Mediclaim policy on me are not taxed. If I am given reimbursement of amounts spent by me for official purposes, such as on conveyance, telephones or professional books and journals, these are not salary or perquisites taxable in my hands.
What is not included in salary Read More »
Add up Salary, Allowances (to the extent taxable), Perquisites (as valued) Minus Standard Deduction (which is Rs.50,000 for Financial Year 2019-20) Minus Tax on Employment (it is prevalent in some states) This is my salary income
How to compute of salary income Read More »
The general rule Salary and all allowances I get are taxable. The exception or exemption rule Some exceptions to taxability are specifically given. If I strictly meet those conditions, I get a benefit or some exemptions from everything being taxed in my allowances. Common ones are: House Rent Allowance I get a benefit or reduction
What is taxed or not taxed in salary Read More »
Salary includes and covers any and every benefit I get from my employer due to my employment.
The objective of this module is to dwelve into: What is salary What is included under the income head salary What is taxed or not taxed in salary How to compute of salary income What is not included in salary How do I know my salary
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