Tax Management – 24MBA4F1 MBA 2025-26

INCOME FROM SALARY

Salary
All remunerations received by an employee from his employer for rendering services are
known as salary. In order to bring any income under this head there must be a relationship
between employer & employee. This relationship is said to exist when:
• The employer has a right to instruct its employees to do certain things &
• The way of doing
➢ Commission received by an agent of LIC is not taxable under this head though he is
appointed by LIC. This is because the LIC can instruct its agent to get policies but methods of
procuring policies depend on the ability & skill of agent. Hence, employer & employee
relationship is missing between LIC & agent. A Member of Parliament or of State Legislature
is not treated as an employee of the Government.
Basis of charge of salary income:
Basis of charge as per section 15 – As per section 15, salary consists of:
a. Any salary due from an employer or a former employer to an assessee in the previous
year, whether actually paid or not;
b. Any salary paid or allowed to him in the previous year by or on behalf of an employer
or a former employer, though not due or before it became due; &
c. Any arrears of salary paid or allowed to him in the previous year by or on behalf of an
employer or a former employer, if not charged to income tax for any earlier previous
year.
Definition of the term Salary:
Under section 17(1), salary is defined to include the following:
a. Salaries or wages
b. Any annuity or pension
c. Any gratuity
d. Any fees, commission, perquisites or profit in lieu of or in addition to any salary or
wages
e. Any advance of salary
f. Any payment received by an employee in respect of any period of leave not availed
by him
g. Annual accretion to a recognized provident fund.

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 Tax Management – 24MBA4F1 MBA 2025-26

Salaries or Wages:
Any salary or wages received by an employee from his employer is taxable. Salary is given
skilled labour& wages is given to an unskilled labour. However there is no distinction
between these two for the purpose of income tax.

GRATUITY [Sec 10 (10)]:

Gratuity is a retirement benefit. It is a lump sum payment made by the employer to the
employee for the past service rendered by the employee. The employer is liable to pay
gratuity either on retirement or death or retrenchment or voluntary retirement or disability of
employee.
For tax purpose employees can be classified into
a. Government employees
b. Non-government employees
a. Government employees:
The gratuity amount received by the central & state government employees & employees of
local authorities & employees of statutory corporation is fully exempted under sec 10(10).

b. Non-government employees:
The non-government employees can be further classified into:
1. Non-government employees covered under payment of gratuity act 1972
2. Non-government employees not covered under gratuity act 1972
1. In case of non-government employees covered under payment of gratuity act 1972:
The gratuity amount received by an employee will exempt to the extent of least of the
following:
a. 15 days salary based on salary last drawn for each year of service (i.e., 15 days
salary X length of service)
b. Monetary limit 2000000
c. Actual gratuity received
Note:
1. Salary last drawn means salary drawn earlier to the month of retirement
2. 15 days salary can be computed as under:
Salary last drawn multiplied by 15/26
3. While computing completed years of service, any service i.e. more than 6 months
to be taken as one full year.
4. Meaning of salary = Basic pay + DA

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 Tax Management – 24MBA4F1 MBA 2025-26

2. In case of non-government employees not covered under gratuity act 1972:

The gratuity amount received by an employee will exempt to the extent of least of the
following:
a. Half month’s average salary for each completed year of service
b. Monetary limit 2000000
c. Actual gratuity received

Note:
1. Average monthly salary is calculated on the basis of average salary for the ten months
immediately preceding the month in which the employee has retired.
2. While computing year of service, any fractional service must be ignored.
3. Meaning of salary = Basic pay + DA [if as per terms of employment] + Commission
on fixed percentage of turnover

PENSION:
It is a regular payment made by the employer to the employee after he retires from service or
on death of the employee.

Uncommuted pension:
It is periodical payment of pension. For instance, X gets monthly pension of Rs.2000. It is
fully taxable as salary under section 15 in the hands of government employee as well as non-
government employee.

Commuted pension:
Sometimes the employee will be given a choice to receive a lumpsum amount instead of
periodical payment. This process of receiving some percentage of pensions over a certain
number of years in lumpsum is known as commuted value of pension. For this purpose
employees are grouped into:
a. Government employees
b. Non-government employees

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 Tax Management – 24MBA4F1 MBA 2025-26

a. In case of government employees:

Any commutation of pension received by government employees fully exempted from tax.
The government employees include; state & central government employees, employees of
local authority & employees of statutory corporation (i.e. RBI, LIC).

b. In case of non-government employees:

➢ If he receives gratuity commuted value of pension is exempted to the extent of 1/3rd of
total commuted value of pension.
➢ If he does not receive gratuity commuted value of pension is exempted to the extent
of ½ of the total commuted value of pension.

ENCASHMENT OF EARNED LEAVE:

It is general practice to credit the employees account with certain days of leave for each year
of service. If an employee does not utilize the leave so credit by the employer throughout the
service the leave so not availed is known as earned leave. Such leave can be surrendered to
the employer either in service time or after retirement in exchange of salary is known as
“Encashment of Earned Leave”.

Encashment during service:

If an employee does not avail his earned leave &receives payment in respect of earned leave
but continues in service. The amount received is fully taxable in the hands of all employees
i.e. government & non-government employees.

Encashment after retirement:

If employee surrenders earned leave at the time of retirement the amount received is
exempted on the basis of:
a. Government employees
b. Non-government employees

a. In case of government employees:

If employee surrenders earned leave at the time of retirement the whole amount received is
exempt in the hands of government employees.

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 Tax Management – 24MBA4F1 MBA 2025-26

b. In case of non-government employees:

The encashment of earned leave for non-government employees at the time of retirement is
exempted to the extent of least of the following;
a. 10 months average salary
b. Average salary for the approved period for which earned leave has not been availed
c. Monetary limit of Rs.300000
d. Actual amount received
Note:
1. Average salary will be calculated on the basis of salary drawn by the employee during
the past 10 months ignoring month in which he retires.
2. Meaning of salary = Basic salary + DA [as per terms of employment] + Commission
at fixed percentage on turnover.

Fees, Bonus, Commission, Allowances, Perquisites & Profit in Lieu of Salary:

Fees or Commission:
Fees or commission payable by employer to employee, when an employee does extra work
(not overtime) apart from the terms of employment. This is fully taxable in the hands of
employee.

Bonus:
It is a payment made by employer out of profits. It is a kind of incentive which is fully
taxable.

Allowances:
The basic pay is payable under terms of employment. Apart from this the employee may get
additional emoluments or benefits from his employer. These additional benefits may be
received in the form of cash or in kind. Additional benefits or emoluments received in the
form of cash are called allowances.
For the tax purpose allowances can be classified into:
a. Fully taxable allowances
b. Partly taxable allowances or partly exempted allowances &
c. Fully exempted allowances.

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Tax Management – 24MBA4F1 MBA 2025-26

Allowances
Fully Taxable under both Fully Taxable under new Fully Exempt under both
regimes tax regime/ Partly exempt the regimes
under the new tax regime
Entertainment Allowance House Rent Allowance [u/s Allowance granted to
10(13A)] Government employees
outside India [Section 10(7)]
Dearness Allowance Special Allowances [u/s
10(14)]
Overtime Allowance Except:
Fixed Medical Allowance a) Travelling allowance
City Compensatory b) Daily allowance
Allowance (to meet increased
cost of living in cities)
Interim Allowance c) Conveyance
allowance
Servant Allowance d) Transport allowance
to blind/ deaf and
dumb/ orthopedically
handicapped
employee

Project Allowance Note – The exceptions in (a)

to (d) above are partly exempt
under both the tax regimes

Tiffin/Lunch/Dinner
Allowance
Any other cash Allowance
Non-practicing Allowance
Transport Allowance to
employee other than blind/
deaf and dumb/
orthopedically handicapped
employee

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 Tax Management – 24MBA4F1 MBA 2025-26

a. Fully taxable allowances:

The following allowances are fully taxable in the hands of all employees.
1. Dearness allowance, additional allowance or dearness pay:
This is the most common & regular allowance given to employees by all the employers to
enable them to meet the additional cost of living on account of high price prevailing. It
always subjects to change depending on the economic conditions of a nation. When dearness
allowance given under terms of employment, it is included in the meaning of salary for
various purposes of determining the exemption limits, valuation of perquisites & retirement
benefits.
It should be noted that “Dearness pay” is always considered as under terms of employment.
2. City compensatory allowance:
It is an allowance given by the employer to an employee to compensate high cost of living in
the cities.
3. Fixed medical allowance:
It is an allowance given to meet the medical expense of an employee & his family members.
4. Servant allowance:
This allowance is given to an employee to facilitate him to pay wages to domestic servants.
5. Non practicing allowance:
It is generally given to doctors who are in government service & they are banned from doing
private practice.
6. Warden allowance:
These allowances are given in educational institutions for working as warden of the hostel
7. Tiffin/Lunch/Dinner allowance:
It is given to an employee to meet the cost of lunch& refreshments. It is also known as meal
or refreshment.
8. Overtime allowances:
Where an employee works for extra hour, is given over time allowance.
9. Other allowances: Any other allowances which are not discussed under partly taxable &
fully exempted are taken as fully taxable allowances. i.e., marriage allowance, project
allowance, family allowance etc.

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 Tax Management – 24MBA4F1 MBA 2025-26

b. Partly taxable allowances or partly exempted allowances under the optional tax regime
(Old Regime)/ Allowances which are fully taxable under default tax regime (New
Regime):
• House rent allowance
• Entertainment allowance
• Special allowance
1. House rent allowance SEC 10(13A):
This allowance is given to an employee to meet the cost of high rent prevailing in different
cities. An employee can claim exemption if he is paying rent HRA received by an employee
is exempt under Sec 10(13A) to the extent of least of the following under old regime:
a. Actual HRA received
b. Excess of rent paid over 10% of salary [i.e., Rent paid – 10% of salary]
c. 50% of the salary if the accommodation is situated in Bombay, Chennai, Delhi &
Calcutta & 40% of salary if the accommodation is situated in other places.

2. Special allowance SEC 10(14):

A. Special allowance given to meet the expenses in relation with the office under section
10(14).
• Traveling allowance/Transfer allowance
• Conveyance allowance
• Daily allowance
• Helper allowance
• Research allowance
• Uniform allowance

B. Special allowance given to meet the personal expenses under section 10(14)(ii):
• Special compensatory allowance • Underground allowance
• Tribal areas/scheduled areas allowance • High altitude allowance
• Allowance for transport system employees • Island duty allowance
• Children education allowance • Border area allowance:
• Children hostel allowance • Counter insurgency allowance
• Compensatory field area allowance
• Compensatory modified area allowance

c. Fully exempted allowances:

Allowances payable outside India [Section 10(7)]:
Allowances or perquisites paid or allowed as such outside India by the Government to a
citizen of India for services rendered outside India are exempt from tax.

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 Tax Management – 24MBA4F1 MBA 2025-26

Perquisites:
Perquisite may be defined as any casual emolument or benefit attached to an office or
position in addition to salary or wages. It also denotes something that benefits a man by going
into his own pocket. Perquisites may be provided in cash or in kind. Most of the perquisites
will be given in kind. For income tax purpose there perquisites measured in terms of money.
Perquisites are classified into three groups.
➢ Perquisites taxable in the hands of all employees
➢ Perquisites taxable in the hands of specified employees
➢ Tax free perquisites

1. Perquisites taxable in the hands of all employees:

➢ The value of rent free accommodation
➢ Accommodation given at concessional rent
➢ Any obligation of an employee met by the employer
➢ Any sum payable by the employer through a fund
➢ Value of benefits or amenities sec 17(2) (vi)

i) The value of rent free accommodation:

When the accommodation is given by employer to his employee at free of rent, it is known as
rent free accommodation. It may be owned by the employer or hired one, & it may be
furnished or unfurnished. Furnished accommodation means accommodation given along with
furniture, sofa, TV, fan etc. unfurnished accommodation means accommodation given
without the above stated facilities. For the purpose of tax employees have been classified
into:
Government employees:
In case of government employees the taxable value of rent free accommodation shall be
according to the rules framed by the govt. so the value informed in the problem should be
taken as taxable value of the perquisite.
Non-government employees:
The taxability of rent free accommodation in the hands of non-government employees is
shown below:
a. In the case of employer owns the accommodation:
➢ If the accommodation is situated in a city where the population is less than or equal to
10 lakh, the taxable value of the perquisite is 7.5% of the salary.

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Tax Management – 24MBA4F1 MBA 2025-26

➢ If the accommodation is situated in a city where the population is more than 10 lakh
but less than or equal to 25 lakh, the taxable value of the perquisite is 10% of the
salary.
➢ If the accommodation is situated in a city where the population is more than 25 lakh,
the taxable value of the perquisite is 15% of the salary.
b. In the case of employer taken the accommodation on lease or rent basis:
In this case the taxable value of the perquisite shall be least of the following:
➢ 15% of salary
➢ Actual rent paid by the employer

Where the accommodation is provided by the employer to the employee in a hotel, the
value of perquisites shall be:
• Where accommodation is provided on his transfer from one place to another, the
period in aggregate not more than 15 days, the value of perquisites shall be taken as
nil
• If the accommodation provided in a hotel, the period in aggregate more than 15 days.
24% of salary
or
Actual amount paid by the employer to hotel is to be taken as value of perquisites
The above value of perquisites is reduced by the amount paid by the employee & balance is
to be taken as value of perquisites.
Meaning of salary = Basic pay + Dearness allowance (as per terms of employment) +
Fees + Bonus + Commission + Taxable portion of allowance +
Monitory values [except perquisites sec 17 (2)]

Valuation of rent free furnished accommodation:

It should be ascertained as below:
➢ Ascertain the taxable value of the accommodation as if it is rent free.
➢ Add 10% of cost of furniture (if the employer owns the furniture) or add the actual
hire charges paid by the employer (if the furniture is hired one)
ii) Accommodation given at concessional rent:
The employer provides accommodation to its employees not absolutely free of cost but by
charging a nominal rent. So the accommodation provided to an employee for which employee
pays a nominal rent is known as accommodation given at concessional rent.

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Tax Management – 24MBA4F1 MBA 2025-26

The following steps are to be followed for valuing such perquisite:

i) Find out the value of accommodation whether furnished or unfurnished as if it is rent
free.
ii) Deduct the rent paid by the employee to the employer.
iii) Balance amount will be taxable in the hands of employee.

iii) Any obligation of an employee met by the employer:

There are certain expenses, which are payable by the employee but paid by the employer on
behalf of the employee is known as obligation of an employee met by the employer. The
following are few examples:
➢ Employee’s club or hotel bills are not connected with the employer’s business paid by
the employer
➢ The loan of an employee paid by the employer
➢ Education expenses of the children of an employee
➢ Income tax & professional tax of an employee paid by the employer
➢ Salary of servant of an employee, appointed by the employee paid by the employer
➢ Legal expenses to defend the employee paid by the employer.

iv) Any sum payable by the employer through a fund (other than RPF):
Any sum paid by the employer to effect an insurance on the life of the employees is fully
taxable in the hands of all employees.

v) Value of benefits or amenities sec 17(2) (vi):

• Interest free or concessional loan
• Use of movable asset
• Transfer of movable asset

a. Interest free or concessional loan:

b. Use of movable asset:
If the employer provides free use of movable asset to employee, the value of the perquisites is
determined as follows:
• If the employer owns the asset, 10% cost of asset. If the asset used more than 10 years
then the value of perquisites is to be taken as nil. Reduce the amount paid by the
employee.

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• If the asset taken on rent, the actual rent paid by the employer is to be taken as value
of perquisites. Reduce the amount paid by the employee.

c. Transfer of movable asset:

Where the employer transfers any movable assets owned by him to the employee at free of
cost the taxable value of the perquisite shall be ascertained as below:
i. Transfer of computer & electronic items:
In this case, the taxable value is the cost of the asset less depreciation at 50% P.A. under
WDV method for completed years of use by the employer.
ii. Transfer of motor car:
In this case taxable value is the cost of the asset less depreciation at 20% P.A. under
WDV method for completed years of use by the employer.
iii. Transfer of any other assets:
In this case taxable value is actual cost of the asset less depreciation at 10% under
straight-line method for completed years of use by the employer.

d. Valuation of perquisite in respect of motor car:

➢ Car owned or hired by employer, expenses incurred by employer & used for partly
official & partly personal purposes:
Rs.1800 per month (1600cc/1.6 ltr or less)/ Rs.2400 per month (above 1600cc/1.6 ltr)
for car & Rs.900 per month for driver. Expenditure recovered from employee is not
deductible.

➢ Car owned or hired by employer, expenses incurred by employer & provided to an

employee wholly for personal purposes:
Entire expenditure incurred by employer including depreciation at the rate of 10 per
cent per annum of actual cost of the car, is taxable in the hands of employer. Expenses
recovered from employee are deductible.

➢ Car owned or hired by employer, used for partly official & partly personal purposes,
expenses for private purposes incurred by employee:
Rs.600 per month (1600cc/1.6 ltr or less) / Rs.900 per month (above 1600cc/1.6 ltr)
for car & Rs.900 per month for driver. Expenditure recovered from employee is not
deductible.

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➢ Car owned by employee, expenses incurred by employer & used for partly official &
partly personal purposes:
Actual expenditure incurred by employer minus expenditure pertaining to official use
minus anything recovered from employee, is taxable in the hands of employee.
Expenditure pertaining to official use can be calculated as per logbook of the car.
Alternatively, expenditure pertaining to official use can be calculated at the rate of
Rs.1800 per month (1600cc/1.6 ltr or less) / Rs.2400 per month (above 1600cc/1.6 ltr)
for car & Rs.900 per month for driver.

2. Perquisites taxable in the hands of specified employees:

Specified employees are:
➢ Employee director: an employee who is also acting as director of the same company,
such employee director is known as specified employee.
➢ Employee with substantial interest: if an employee holding more than 20% of the total
voting power or equity shares of the company where he is working, such an employee is
said to have substantial interest in the company. Such employee is considered as
specified employee.
➢ Other employees: any other employees whose cash emoluments received from his
employer exceeds Rs50000 pa after making deduction under sec 16 are considered as
specified employees.
Following are the perquisites taxable in the hands of specified employees:
a) Facility of sweeper, watchman, gardener& other domestic servants.
b) Facility of gas, water & electricity.
c) Education facility

a. Free use of sweeper, watchman, gardener& other domestic servants:

b. Facility of gas, water &electricity:
c. Free or concessional tickets
d. Use of motor car
e. Free or concessional educational facilities
3. Tax free perquisites:
The value of following perquisites shall not include in the salary income of employee.
1. Medical benefits:
The provisions relating to medical benefits are:

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a) The taxable value of the medical treatment provided to employees or to the members of
his family at free of cost in a hospital run by the employer should be taken as nil.
b) Any sum paid by the employer in respect of any expenditure incurred by the employee
on medical treatment for himself or members of his family in government hospital or any
approved hospital is exempted.
c) Premium paid or reimbursed by the employer on health policies taken by the employee to
insure the health of employee or members of his family is a tax free perquisite.
d) If the employer reimburses the cost of availing treatment for the employee of members of
his family in any private hospital is exempted up to Rs.15000.
e) If the employer reimburses the cost of availing treatment for the employee or members of
his family outside India the taxability shall be determined as the cost of medical
treatment & stay (for one attendant) reimbursed is exempted up to limit prescribed by
assessing officer or RBI.
2. Leave travel concession
3. Telephone
4. Privilege passes and privilege ticket
5. Perquisites allowed outside India by the Government
6. Employer’s contribution to staff group insurance scheme
7. Annual premium by employer on personal accident policy
8. Refreshment
9. Subsidized lunch: Subsidized lunch provided to an employee during working hours at office
or business premises provided the value of such meal is upto ₹50 (This exemption is
available only for old regime)
10. Amount spent on training of employees
11. Recreational facilities

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Deductions under sec16:

a. Standard deduction Sec 16(i)(ia):
Standard deduction is ₹50,000 or the amount of salary, whichever is lower.

Provident fund:
The word provident means provide for future. Hence provident fund is a established for
helping an employee in future. Every employee can become a member of this fund. To this
fund there will be a contribution from the employee in every month, which is computed at a
certain percentage on basic pay & DA. A similar amount will also be contributed by the
employer. The total accretion to the fund is eligible for interest at 9.5% pa. The amount so
accumulated throughout the service period will be payable to an employee on his retirement,
which helps him in leading his retired life or legal heirs in case of death of an employee.
The balance of provident fund on any date consists of 4 components they are:
➢ Employee’s contribution
➢ Employer’s contribution
➢ Interest on employee’s contribution
➢ Interest on employer’s contribution

Types of provident fund:

a. Statutory provident fund:
This fund was established under the Indian provident fund act 1925. This fund will be
maintained by government & semi government offices like local authorities, universities,
educational institutions, statutory companies & nationalized banks.
b. Recognized provident fund:
This fund was established under employees provident fund act 1952. This act applies to
all private organizations employing 20 or more than 20 employees. This fund is known as
recognized provident fund as this fund is recognized by both the commissioner of
provident fund & income tax. There will be contribution by employer & employee to this
fund & this fund is maintained only in the private sector.
c. Unrecognized provident fund:
It is also a provident fund maintained by private sector which is recognized by
commissioner of provident fund only. Until it is recognized by the commissioner of
income tax it is termed as unrecognized provident fund.

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d. Public provident fund:

Any public can become a member of public provident fund. An employee who is a
member of employee’s provident fund can also become a member of this fund. In order to
become a member of this fund one has to open P.P.F account in state bank of India or its
subsidiaries or in any head office. One person can open one account only.
The minimum contribution to this fund is Rs.500 in a year deposited under this account.
The accumulated sum is repayable after 15 years (it may be extended).

The following table shows the provisions of IT regarding PF:

Particulars S.P.F R.P.F U.R.P.F P.P.F

Employees
1 Exempted Exempted Exempted Exempted
contribution
Exempted to
the extent
Employers Does not
2 Exempted 12% of Exempted
contribution arise
employee
salary
Interest on employees
3 Exempted Exempted Exempted Exempted
contribution

Exempted to
Interest on employers Does not
4 Exempted the extent of Exempted
contribution arise
9.5% p.a.

a) Employees
contribution is
exempted.

b) Interest on
employees
contribution is taxable
Lump sum amount Exempted
5 Exempted under the head other Exempted
received on retirement u/s 10(11)
sources.

c) Employer
contribution & interest
thereon all taxable
under the head
salaries.

Meaning of salary = Basic pay + DA (as terms of employment) + percentage of commission

on turnover.

*******
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Tax Management – 24MBA4F1 MBA 2025-26

Proforma for computation of income from salary as per New Regime under
section 115BAC
Particulars Amount (₹)
i. Basic Salary xxx
ii. Fees/Commission xxx
iii. Bonus xxx
iv. Allowances xxx
a Dearness Allowance (Fully Taxable) xxx
b House Rent Allowance (HRA) (Fully Taxable) xxx
c Children Education Allowance (Fully Taxable) xxx
d Children Hostel Allowance (Fully Taxable) xxx
e Transport Allowance xxx
Less: ₹3,200 per month only in case of blind/deaf and
dumb/orthopedically handicapped employee
f Entertainment Allowance xxx
g Travelling Allowance/ Daily Allowance/ Conveyance Allowance xxx
Less: Exempt if the amount is fully utilized for the purpose
h Other Allowances including overtime allowance, City compensatory xxx
allowance etc. (Fully Taxable)
v. Taxable Perquisites
a Value of rent free accommodation provided to the employee (Refer xxx
Material)
b Value of any accommodation provided to the employee at a concessional xxx
rent (Refer Material)
c Obligation of employee discharged by employer (Refer Material) xxx
d Any sum payable by the employer to effect an assurance on the life of the xxx
employee or to effect a contract for annuity (Refer Material)
e Value of use of motor car (Refer Material) xxx
f Any other perquisite: xxx
1. Provision of services of a sweeper, gardener, watchman or
personal attendant: Actual cost to employer by way of salary paid
or payable for such services (-) amount paid by the employee.
2. Gas, electricity, or water supplied by employer for household
consumption of the employee: Amount paid on that account by the
employer to the agency supplying gas etc. (-) amount paid by the
employee
3. Provision of free or concessional education facilities for any
member of employee’s household: Sum equal to the expenditure
incurred by the employer (-) amount paid or recovered from the
employee.
Where educational institution is maintained and owned by
employer: Cost of such education in similar institution in or near
the locality (-) amount paid or recovered from employee (however,
there would be no perquisite if the value of benefit per child does
not exceed ₹1,000 p.m.)
4. Interest-free or concessional loan exceeding ₹20,000: Interest
computed at the rate charged by SBI as on 1st day of relevant P.Y. in
respect of loans for similar purposes on the maximum outstanding
monthly balance (-) interest actually paid by employee.

17 Dr. Vinay H V, Assoc. Professor, BMSIT&M, Bengaluru

Tax Management – 24MBA4F1 MBA 2025-26

5. Free food and non-alcoholic beverages through paid vouchers

6. Value of gift, voucher: Sum equal to the amount of such gift (if
value of gift, voucher is below ₹5,000, there would be no perquisite)
7. Use of moveable assets
8. Transfer of moveable assets
vi. Leave travel concession (Fully Taxable) xxx
vii. Gratuity (Refer Material) xxx
viii. Uncommuted pension (Fully Taxable) xxx
ix. Commuted pension (Refer Material) xxx
x. Leave Encashment (Refer Material) xxx
Gross Salary xxx
Less: Deduction under section 16 xxx
Standard deduction u/s 16(ia) – amount of salary or ₹50,000 whichever is
less
Income under the head “Salaries” xxx

18 Dr. Vinay H V, Assoc. Professor, BMSIT&M, Bengaluru