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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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.