income under head salary

income under head salary

Free domestic servant provided by employer :


Watchman, sweeper or Gardner provided by employer

– cost incurred by employer will be vlue of perquisite.

  • Gas, electricity and water supply provided by employer
  • owned by employer- manufacturing cost
  • purchase by employer -market price or purcahse cost

Note :  If unfurnished or furnished house owned by employer

and provided as perquisite nothing is taxable it is included in value of house.


But if house is hired by employer cost of gardener will be value of perquisite.


Gas, electricity and water supply provided by employer




Notes : Value of perquisite = WDV calculated as Above –Recovered (sale value)

Depreciation is calculated for the completed years only.

  • Electronic Items include computer, devices but exclude house hold


Family includes Spouses, children dependent brother, sister and parents only.

No grand parents allowed.






Provident fund :


Employer’s contribution E E Up to 12 % of salary E NA
Employee’s contribution Already Taxed Already Taxed Already Taxed Already Taxed
Interest E E up to 9.5 %

Excess will be taxable.

             E E
80C Y Y N Y


Lump sum payment E E If retirement after 5 years.(Note) Taxable as below E











E FOR Exempt

Salary meand (basic + DA in terms +  commission on turnover)

of respective period.

RPF – retire before 5 years in following circumstances are exempt

Beyond his control like ill health, close the business etc,

Transfer of balance from RPF TO RPF OR NPS

If not satisfy above condition it will be taxable like URPF





Leave a Comment

Your email address will not be published. Required fields are marked *

error: Please do not copy :)
Scroll to Top