Section 17(1)

Apart from the normal meaning of salary it also includes the following

(1) Wages

(2) Annuity (annual payment)

(3)  Pension

(4)  Gratuity

(5)  Any commission /fees received by employee

(6)  Any perquisites (benefits) provided to employee

(7)  Any profit in lieu of salary

(8)  Any advance salary

(9)  Any leave encashment

(10) Any employer contribution to RPF (recognized provident fund ) > 12% of salary

11) Interest earned on RPF > 9.5% .

(12) Any contribution  under Notified pension scheme under section 80CCD


Note :- 

The aggregate of all these amount received is  called Gross  Salary .From this deduction are allowed in respect of

(1) Entertainment allowance

(2) Professional tax on employment to arrive at Income from salary


  1. Income Tax
  2. Income from Salaries

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.