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Report No. 12

17. Interpretation.-

For the purposes of sections 15 and 16 [preceding sections re: salary] and of this section,-

(1) "employer" means an employer, who is the Central Government, a State Government, any foreign Government, a local authority, a company, any public body or association, or any private employer;

["Employer" I [Section 7(1), part]

(2) "salary" includes-

(i) any salary or wages;

(ii) any annuity or pension;

(iii) any gratuity;

(iv) any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

(v) advances by way of loan or otherwise of the amounts enumerated in sub-clauses (i), (iii) and (iv) above;

(vi) the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under section 294 [58E];

(vii) the aggregate of all sums that are comprised in the transferred balance, as referred to in section 299 (2) [581(2)] of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under section 299(3) [581(3)];

["Salary"] [Section 7(1), part] [New]

(3) "perquisite" includes-

(i) the value of rent free accommodation provided to the assessee by his employer;

[Item (i), part]

(ii) the value of any concession "in the matter of rent respecting any accommodation provided to the assessee by his employer;

[Item (i), part]

(iii) the value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:-

(a) by a company to an employee who is a director thereof

[Item (ii), part]

(b) by a company to an employee who is a share-holder concerned in the management of the company and is the beneficial owner of shares, not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits, carrying twenty per cent or more of the voting power;

[Item (ii), part read with section 2(6C)(iii)]

(c) by any employer, (including a company) to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head "Salaries" exclusive of the value of all benefits or amenities not provided by way of monetary payment exceeds eighteen thousand rupees;

[Item (iii)]

(iv) any sum paid by the employer in respect of any obligation which but for such payment would have been payable by the assessee; and

[Item (iv)]

(v) any sum payable by the employer, whether directly or through a fund other than a recognised provident fund or an approved superannuation fund to effect an assurance on the life of the assessee or to effect a contract for an annuity on the life of the assessee;

["Perquisite"] [Section 7(1), Expin. 1]

(4) "profits in lieu of salary" includes-

(i) the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with, the termination of his employment, whether solely as compensation for loss of employment, or for any other consideration;

(ii) the amount of any contributions to an approved superannuation fiend (including interest on such contributions) paid to an employee, to the extent to which such amount is deemed to be the income of the employee under section 312 [58-5(1)];

(iii) without prejudice to the provisions of sub-clause (ii) of this clause, any payment due to or received by an assessee from an employer or former employer or from a provident or other fund, (not being an approved superannuation fund), to the extent to which it does not consist of contributions by the assessee or interest on such contributions.

["Profits in lieu of salary"] [Section 7(1), Expin. 2, main part] B. Interest on securities



Income-Tax Act, 1922 Back




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