Section 15 of the Income Tax Act is based on the salary of the employee or employer. It shall be chargeable to the income-tax under the headings of the “ Salaries ”:
- The salary is due from the side of the employer or a former employer to asses in the last few years, whether the salary is paid or not.
- When the salary is paid or allowed him in the last few years by or on the behalf of the employer through it will not due or before it becomes due from them.
- If there are any difficulty or problem when salary paid or salary is allowed to him in the last few years by or in the place of the employer or any former employer if they do not charge it into the income-tax for the previous years.
Example – 1: When there are any removals of the doubts then it is hereby declared that where any salary is paid in advance then it will be included in the total income of any person for any last years, then it shall not be included again in the total incomes of the person when the salary becomes due.
Example – 2: If any person gets the salary, bonus, commission or remuneration, by any other name are in due to, or received by, a partner of a firm from any firm which should not be regarded as the “salary” for the purpose of section 15 of Income Tax Act.
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Key Terms In Section 15 of the Income Tax Act
Some important terms in section 15 are:
Salary Arrears refers to the payments that are overdue and that are supposed to be made at the end of a given period after missing out on the required payments. Hence, the Total arrears have been equal to the sum of all the payments that have been accumulated over time At the time when the first payment was made due. … For example, The company paid a salary to its employees.
A bonus is a type of financial compensation that is also above and beyond the normal payment expectations of its recipient. Thes type of Bonuses may be awarded by the companies as an incentive or to reward by good performance. Hence, Typical incentive bonuses a company can give employees include signing, referral, and retention bonuses.
The commission is ordered for someone to do some work and get paid in the return. The artist received a commission for a new painting hanging in the building lobby. And a commission is a high-ranking position in the armed forces or for the special committee that controls or investigates something.
Remuneration is a type of payment or compensation received which were received for the services or employment. This includes the base salary and any bonuses or other economic benefits that an employee or executive member or employee receives during the employment period.