Facts about salaried individuals | Fusion - WeRIndia

The definition of salary is receiving an amount of money from an employer for the services done. Here are some important facts about salaried individuals.

Allowances

These are the payments given by some companies apart from the salary. They are given for particular needs of the employees. This includes transport allowance, tiffin allowance etc.

Pension Income

The pension that one receives from United Nations Organization is exempt. At the same time, family pension can be taxable as income from other sources.

Leave encashment

This money is taxable if received while under service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee.

PF and Gratuity

For a government employee, Gratuity and PF receipts on retirement are exempt from tax. However, when it comes to a non-government employee, gratuity is exempt subject to the limits prescribed in this regard. Furthermore, PF receipts are also exempt from tax.

Form 16

This is a certificate of TDS. This is not applicable to you if no tax has been deducted from your salary. The condition is that your employer must issue a salary statement. In case you have worked in three different companies and not one of them has deducted any tax from salary paid, then, if the total income tax exceeds the limit, you are liable to pay self-assessment tax.

Image by Kamalakannan PM from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/fr/photos/paiement-salaire-monnaie-l-argent-473685/