Format of computing Income from Salaries
- Salary / Wages
- Dearness allowance/Dearness pay
- Bonus
- Fees
- Commission
- Pension
- Employer’s contribution in excess of 12 % of salary to R.P.F
- Interest in excess of 8.5 % on R.P.F
- Taxable allowances
- Value of taxable perquisites
- Taxable part of Gratuity
- Taxable part of Encashment of Earned Leave
- Taxable part of retrenchment compensation-if retrenched
- Taxable part of voluntary retirement-if voluntary retired
- Taxable part of commutation of pension
- Taxable part of compensation received
- Lump-sum received from unrecognized provident fund:
- Share of employer
- Interest on share of employer
GROSS SALARY
LESS:
- Entertainment Allowance(Only to government employees, maximum rs 5,000)
- Professional Tax
TAXABLE SALARY