The Income Tax Act of India serves as the legal framework for the imposition of income tax on various entities, including individuals, Hindu Undivided Families (HUFs), companies, firms, co-operative societies, trusts, and other artificial persons. Each of these entities is subject to separate tax levies, regulated by the Income Tax Act of 1961.
The responsibility for overseeing the implementation and administration of income tax falls under the jurisdiction of the Indian Income Tax Department. This department operates under the Central Board for Direct Taxes (CBDT) and functions as a part of the Ministry of Finance, Government of India.
Under chapter 4 of Income Tax Act, 1961 (Section 14), income of a person is calculated under various defined heads of income. The total income is first assessed under heads of income and then it is charged for Income Tax as under rules of Income Tax Act.
Among the different sources of income specified by the Income Tax Act, the income earned under the head “Salaries” holds paramount significance. This category encompasses the earnings received by individuals in the form of remuneration, wages, commissions, or any other monetary compensation arising from employment. In simple terms, Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Any payment made by an employer to an employee for the services rendered by him is chargeable to tax as salary and envisages a ‘contract of employment’. The employer – employee relationship or master-servant relationship is an essential ingredient of a ‘contract of employment’ as against a ‘contract for employment’.
Understanding the provisions and implications associated with income under the head ‘Salaries‘ is crucial for both taxpayers and tax authorities. It enables individuals to effectively comply with their tax obligations while ensuring a fair and equitable assessment of taxable income.
As per section 15, the following income shall be chargeable to income-tax under the head “Salaries”:
(A) any salary due from an employer or a former employer to an assessee in the previous year, whether paid in that previous year 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 in that previous year or before it became due to him;
(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 in any earlier previous year.
Explanation—For the removal of doubts, it is hereby declared that where any salary paid in advance is included in the total income of any person for any previous year it shall not be included again in the total income of the person when the salary becomes due.
Explanation 2.—Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as “salary” for the purposes of this section.
Under this section, a few Important points must be noted regarding the following:
→ Inclusion of Advance Salary: When any salary paid in advance is included in the total income for a previous year, it should not be included again when the salary becomes due.
→ Partnership Remuneration: Salary, bonus, commission, or remuneration received by a partner from a firm is not considered salary for taxation purposes. Instead, it is taxable under the head of profit or gains from business and profession under section 28.[1]
→ Definition of “Paid” and “Allowed”: The term “paid” includes any receipt by the employee from the employer, regardless of whether it was due or not. On the other hand, “allowed” has a broader meaning, encompassing any credit to the employee’s account, signifying the conferment of rights.
→ Taxation on “Due” Basis: If the salary is payable monthly but paid in the following month, it is taxable on a “due” basis, as the due date precedes the actual receipt. Generally, salary is taxable from April to March, with the salary of March becoming due at the end of the month. However, if the salary becomes due on the 1st day of the next month, it should be taxed from March to February.
→ Arrears of Salary[2]: If there are any unpaid salary arrears from previous years, they are taxed in the year in which they are paid or allowed to the employee. Relief of income tax under Section 89 can be claimed in such cases.[3]
→ Scope of “Salaries”: The term “salaries” covers all forms of remuneration for any kind of servant, regardless of their position or whether they are public or private employees. There is no distinction between the wages of laborers and high-ranking officials.
→ Employer-Employee Relationship: For a payment to qualify as “salaries,” there must be an employer-employee relationship between the payer and payee. While every servant is an employee, an agent may or may not be considered an employee. In the case of CIT v. Govindaswaminathan 233 ITR 264 (Mad), it was held that there is no employer-employee relationship between State Government and Advocate General. In CIT v. Shiv Charan Mathur 306 ITR 126 (Raj), it was held that no employee-employer relation existed between MLA or MP.
→ Income from employment falls under this section, while income from an office not amounting to employment is taxed under other heads, such as “Income from other sources” or “Profit and Gains from Business or Profession.”[4]
→ Salaries and Professional Income: When engagement in a profession is merely incidental to the profession itself, the earnings from such employment are classified as professional earnings under Section 28, rather than under Section 15 as salaries. The determination of whether an engagement is incidental to the profession depends on factors such as the duration of the employment and the specific circumstances of the case.
→ Receipts from Persons other than the Employer: Any perquisites, profits, or remuneration received from individuals other than the employer, even if related to the employee’s employment, are taxable under the head “Income from other sources.” For example, remuneration received by a college professor for acting as an examiner in a university or board.
→ Even if one has no employer, what is received as salary will be taxed under section 15. In Justice Deoki Nandan Agarwala v. UOI 237 ITR 872 (SC),it was held that judges of the High Court and Supreme Court are not employees; nevertheless, their income is taxable under the head “Salaries”. In Lalu Prasad v. CIT 316 ITR 186 (Pat), it was held that pay and allowance received by CM of a State is taxable.
→ Payments after Cessation of Employment: Payments made by an employer to an employee after the termination of employment are still taxable under the head “Salaries” because they represent remuneration for past services.
→ Payment in Commutation of Pension: Lump-sum payments received in commutation of pension by a government employee are excluded from salary income. Non-government employees receiving commuted pension, along with gratuity, can exclude the commuted value of one-third of their pension. If there is no gratuity, one-half of the pension’s commuted value is excluded.
→ Voluntary Forgoing of Salary: When an employee voluntarily forgoes salary, it is typically considered a mere application of income[5] and remains taxable. However, if there is no agreement to pay the salary, the fictional foregoing would not attract tax.[6] Where the income is accrued or received but it is subsequently given up, it remain the income of the recipient [CIT vs. Shoorji Vallabhdas and co. (1962) 46 ITR 144 (SC)]. The voluntary forgoing by the employee of the salary due to him is normally a mere application of income and the salary is nonetheless taxable. Unless the assessee forgoes his right of the provision of such perquisites before the income accrues, the notional income has to be brought to charge as perquisites equitant to the value of rent-free accommodation [CIT Bawa Singh Chauhan (1984) ITR 8].
→ Tax-Free Salary: When a salary is paid tax-free, the employee needs to include the gross salary, which is the net salary received plus the tax amount paid on their behalf by the employer, except under specific provisions of Section 10(6).
→ Deductions by Employer: Compulsory deductions from salary are considered a mere application of income. Even if a portion of the salary is obligated for certain purposes under a contract, it remains assessable as income under the head “salary.” The employer’s compulsory deductions do not reduce the gross salary for tax purposes.[7]
→ Salary of a Member of Parliament: Salary earned by a Member of Parliament is not taxable under the head “salaries” since they are not government employees. The relationship between a Member of Parliament and the government is not that of a servant and master. Instead, it is taxable under the head “Income from other sources.”
Salary is the remuneration received by or accruing to an individual, periodically, for service rendered as a result of an express or implied contract.
The existence of employer employee relationship is the sine qua non for taxing a particular receipt under the head “salaries.
For the purpose of income tax Section 17(1) he meaning of the term ‘salary’ is much wider than what it i gives an inclusive definition of salary as:
(1) “salary” includes –
(ii) any annuity or pension;
(iv) any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;
(v) any advance of salary;
(va) any payment received by an employee in respect of any period of leave not availed of by him;
(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 rule 6 of Part A of the Fourth Schedule;
(vii) the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule 11 of Part A of the Fourth Schedule of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof; *and
(viii) the contribution made by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;
[(ix) the contribution made by the Central Government in the previous year, to the Agniveer Corpus Fund account of an individual enrolled in the Agnipath Scheme referred to in section 80CCH;]
Thus, according to this section, “Salary” includes the following:
1. Wages – The term “salary” includes wages. “Wages” means “pay given for labour, usually manual or mechanical, at short stated intervals, as distinguished from salaries or fees.
2. Annuity or pension – The term “salary” includes any annuity or pension. Thus, annuity and pension paid by the employer are taxable under he head “salary” whether they are paid voluntarily or under a contractual obligation. If annuity or pension is paid by the employer , it is taxable under the head “salary”, but if it is paid by a person other than the employer , e.g., annuities paid under an insurance policy or under a deed or will, it is taxable as under “ income from other sources “ and not a “ salary “. In a simple language an “annuity “ is a sum of money payable yearly or at any rate periodically , from a source which is exclusively or at any rate primarily personal estate .Thus, in a legal parlance ,”annuity “ means a fixed sum payable yearly or periodically. Pension is a periodical allowance or a stipend granted on account of past services. Pension is taxable under the head salary but payment in communication of pension falling under section 10 (10-A) is exempted from income-tax.
3. Gratuity – “Salary” also include gratuity. A gratuity may be understood as a payment made by the employer to the employee for the services rendered by him to the employer. Certain gratuities are exempted under section 10 (10). It is to be noted that gratuity paid by the employer is taxed under the head “salary” but if paid by a person other than the employer, it will be table as “Income from other sources “and not as “salary”.
4. Fees, commission, Perquisites or Profits in lieu of or in addition to salary or wages:
(A) Fee.- Fees may be understood to mean “reward or compensation for services rendered or to be rendered : especially payment for professional services , optional amount, or fixed by custom or laws , charge ; pay .
(B) Commission – Commission means “ the percentage or allowance made to a factor or agent for transacting business for another .For this purpose , there is no difference between the commission which is wholly dependent upon the work done and fixed salary on a monthly basis. Thus, fees, commissions, perquisites or profits may be in lieu of or addition to regular remuneration and include honorarium or purely voluntary payments. They are all as much taxable as regular salary or wages.
(C) Perquisites -Perquisites mean any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment. Like if an employee is provided with a watchman for official use there is no personal advantage to the employee, hence there is no perquisites. If the watchman is provided for personal as well as official use, the value of the perquisites only relating to personal use is taxable. Similarly if the traveling bills for official duties are reimbursed to the employee, there is no advantage to the assesse, so it is not a perquisite. The perquisites may be in cash or in kind or in the money or money’s worth and also in amenities which are not convertible to the money.
All cash allowance is included in the ordinary meaning of perquisites: – all cash allowance is included and hence taxable under section 17(2) of income tax act. City compensatory allowance, bad climate allowance, shift allowance and incentive bonus are included as perquisites under section 17(2) of income tax act.
A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: – any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources
Wide scope of the inclusive definition of perquisites: – the definition of the perquisites is inclusive but not limited to them only. The scope of an inclusive definition cannot be restricted only to those words which accrue in definition, but with extend to many other things not mentioned in it. Therefore, any other item not listed in the definition of perquisites will have to be evaluated in accordance with the general and commercial meaning of the word perquisites1.
The following propositions should also be kept in view:
# Personal benefit-“Perquisite” denotes something that benefits a man by going into his own pocket; it does not, however, cover a mere reimbursement of necessary expenses incurred by him.
# Cash or kind- It may be provided in cash or in kind.
# Should be provided by employer- Perquisites are included in salary income only if they are received by an employee from his employer (maybe former, present or prospective). Perquisites, received from a person other than employer, are taxable under the head “Profits and gains of business or profession” or “Income from other sources”
# Enforceable right- A benefit or advantage would be taxable as perquisite only if it has a legal origin. As an authorized advantage taken by an employee without his employer’s authority would create a legal obligation to restore such advantage, it would not amount to” perquisite” taxable under the Act On the other hand, if the benefit has been conferred unilaterally without the aid of an agreement between the parties, the employee can be taxed under perquisite. It is not necessary that the benefit should have been received under an enforceable right.
# Personal accident policy- Premium paid by employer towards personal accident policy of employee is not taxable as perquisite.
# Pensionary deferred annuity benefits- Payments made by an employer to provide deferred annuity benefits to his employees are taxable as perquisites only when a vested interest accrues to the employee.
# Personal advantage during employment- Perquisites are taxable under the head “Salaries” only if they are:
(a) Allowed by an employer to his employee,
(b) allowed during the continuance of employment,
(c) Directly dependent upon services,
(d) Resulting in the nature of personal advantage to the employee, and
(e) Derived by virtue to employer’s authority.
It is not necessary that recurring and regular receipt alone is a Perquisite. Even a casual and non-recurring receipt can be perquisite if The aforesaid conditions are satisfied.
(2) “perquisite” includes —
This section (17(2)) refers to the concept of “perquisites” in relation to taxation. Perquisites, commonly known as perks, are benefits or advantages received by an employee in addition to their regular salary. This section provides an analysis of various components that are considered perquisites for taxation purposes. Following are the main components:
Following are also held to be Perquisites:
(i) The first component mentioned is the value of rent-free accommodation provided by the employer to the employee. The value of this accommodation is determined in a prescribed manner. It includes situations where the employer owns the accommodation or leases it, and the value is computed based on specified rates or actual lease rental paid by the employer. It includes both unfurnished and furnished accommodations.
(ii) The second component refers to any concession in rent regarding accommodation provided by the employer. The value of this concession is determined based on specific conditions. It includes scenarios where the accommodation is unfurnished or furnished and whether it is provided by the Central Government, State Government, or other employers.
The subsequent explanations further clarify the provisions mentioned above and provide additional details:
Explanation 1 clarifies the concept of a concession in rent and how it is deemed to have been provided in different situations.
Explanation 2 defines the value of furniture and fixtures in relation to furnished accommodation.
Explanation 3 specifies what constitutes “salary” for the purpose of calculating perquisites. For the purposes of this sub-clause, “salary” includes the pay, allowances[14], bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called, from one or more employers, as the case may be, but does not include the following, namely:—
(a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;
(b) employer’s contribution to the provident fund account of the employee;
(c) allowances which are exempted from the payment of tax;
(d) value of the perquisites specified in this clause;
(e) any payment or expenditure specifically excluded under the proviso to this clause.
Explanation 4 provides the specified rates of value for rent-free accommodation based on the population of cities.
Following this, the section states that sub-clause (ii) and the associated explanations will be substituted by the Finance Act, 2023, effective from April 1, 2024. The new sub-clause includes the value of any accommodation provided to the employee at a concessional rate.
The section then continues with further components of perquisites:
(iii) The value of any benefit or amenity granted or provided free of cost or at a concessional rate in any of the following cases—
(a) by a company to an employee who is a director thereof;
(b) by a company to an employee being a person who has a substantial interest in the company;
(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” (whether due from, or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds fifty thousand rupees:
(iv) any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee;
(v) any sum payable by the employer, whether directly or through a fund, other than a recognised provident fund or an approved superannuation fund or a Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or, as the case may be, section 6C of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), to effect an assurance on the life of the assessee or to effect a contract for an annuity;
(vi) the value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.
(vii) The amount or aggregate of contributions made by the employer to recognized provident funds, specific schemes, or approved superannuation funds, beyond a certain threshold.
(viia) The annual accretion by way of interest, dividend, or similar amounts to the balance of the mentioned funds or schemes, to the extent it relates to contributions exceeding the threshold.
(viii) The value of any other fringe benefit or amenity as prescribed.
The section includes provisos that exempt certain benefits from being considered perquisites for taxation purposes, such as medical treatment provided by the employer, contributions to health insurance schemes, and certain medical expenditures incurred by the employee.
The explanation section at the end provides definitions for terms used in the clause, including “hospital,” “family,” and “gross total income.”
Overall, this section of the legislation outlines the various components that are considered perquisites and subject to taxation for employees.
(3) “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 or the modification of the terms and conditions relating thereto;
(ii) any payment (other than any payment referred to in clause (10), clause (10A), clause (10B), clause (11), clause (12), clause (13) or clause (13A) of section 10), due to or received by an assessee from an employer or a former employer or from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.
Explanation.—For the purposes of this sub-clause, the expression “Keyman insurance policy” shall have the meaning assigned to it in clause (10D) of section 10;
(iii) any amount due to or received, whether in lump sum or otherwise, by any assessee from any person—
(A) before his joining any employment with that person; or
(B) after cessation of his employment with that person.
The Income Tax Act of 1961 provides various exemptions to taxpayers to reduce their taxable income and save taxes. One such benefit is available under Section 16 of the Income Tax Act, which allows employees to claim deductions from salary income. The Sections reads as:
The income chargeable under the head “salaries” shall be computed after making the following deductions :
(ia) a deduction of fifty thousand rupees or the amount of the salary, whichever is less;
(ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
Thus, Section 16 of the Income Tax Act allows employees to claim the following benefits[15]:
1. Standard Deduction [Section 16(ia)]
A standard deduction is allowed against the salary income subject to a limit of ₹ 50,000/- or the amount of salary whichever is less.
2. Entertainment Allowance [Section 16(ii)]
Entertainment allowance is a taxable allowance and forms a part of the taxable salary. However, Government employees who are in receipt of such an allowance are eligible for a deduction in respect of the entertainment allowance received by them to the extent of the least of the following:
The actual expenditure incurred for the purposes of entertainment is not relevant to the calculation of the deduction. No such deduction is available to employees other than Government employees.
3. Tax on Employment [Section 16(iii)]
Criteria for Eligibility for Section 16 deduction: A taxpayer must meet the following criteria to claim section 16 deduction-
1. The taxable person must be an employee.
2. The taxpayer must have received a salary during the financial year.
3. The taxpayer must have paid business tax during the financial year.
4. In the case of representative subsidy, only government employees can claim this discount.
It is important to note that income under Chapter 16 can be claimed by individual taxpayers and not by Hindu Undivided Families (HUFs) or other taxpayers. [16]
i. CIT v. LW Russel 1965 AIR 49, 1964 SCR (7) 569
Facts: – The respondent was an employee of the English and Scottish Joint Cooperative Wholesale Society Ltd. incorporated in England. The Society established a superannuation scheme for the benefit of the male European members of its staff employed in India by means of deferred annuities. Under the terms of the scheme, the trustee has to affect a policy of insurance for the purpose of ensuring an annuity to every member of the, Society on his attaining the age of superannuation or on the happening a specific contingency. The Society contributed, one-third of the premium payable by each employee. During the year 1956-57, the Society contributed Rs. 3333/- towards the premium payable by the respondent, an employee of the Society. The Income-tax Officer included the said amount in the taxable income of the respondent for the year 1956-57 under s. 7(1), Explanation 1, sub-cl. (v) of the Act.
(1) Whether the contribution paid by the employer to the assessee under the terms of a trust deed in respect of a contract for a deferred annuity on the life of the assesses is a perquisite as contemplated by s. 7(1) of the Income-tax Act?
(2) Whether the said contributions were allowed to, or due to the applicant by or from the employer in the accounting year?
(3) Whether the deferred annuity aforesaid is annuity hit by s. 7(1) and para (v) of Explanation 1 thereto.
Held: The SC held that One cannot be said to allow a perquisite to an employee if the employee has no right to the same. It cannot apply to contingent payments to which the employee has no right till the contingency occurs. The principle laid down by the Court of Appeal, namely, that unless a vested interest in the sum accrues to an employee it is not taxable. It is not a perquisite allowed to him by the employer or an amount due to him from the employer within the meaning of s. 7(1) of the Act. In other words, the court held that a benefit or advantage will be taxable as perquisite only if it has a legal origin, i.e. derived by virtue of the employer’s authority or the employee is legally entitled to it.
ii. Ram Pershad Commissioner of Income-Tax, 1973 AIR 637, 1973 SCR (3) 985
Facts: – The assessee and his wife owned a large number of shares in a private limited company engaged in the business of running hotels. Under an agreement, the assessee was to receive 10 per cent of gross profits of the, the assesses was assessed in respect of Rs. 53,913/- payable to him as 10% of the gross profits of the company which he gave up soon after the accounts were finalized but before they were passed by the general meeting of the shareholders.
The above amount was given up by him because the company would not be making net profits if the stipulated commission was paid to him. The assessee claimed that the amount given up by him was not liable to be included in his total income because the amount had not accrued to him at all.
Issue: A, the amount is chargeable under s. 7 or s. 10 of the Income-tax Act?
B. If the amount is chargeable under section 10, is the assessee entitled to a deduction of. Rs. 53,913/- tinder s.10(1) or s. 10(2)?
Held: – that the amount payable as commission was chargeable under S. 7 as salary and not under S. 10 of the Act. On this view, the Honorable Supreme Court while discussing the relationship of the appellant with the company in order to assess the income as salary held that there must be relationship of master and servant between the company and the assessee.
In the present matter the MD of the company is bound by the board of directors Therefore hold that the 10 percent remuneration out of the profit of the company given to the MD was bound by the board of the director in accordance with article of association will fall under the head of salary.
To sum up, income earned under the head “Salaries” is chargeable to income tax as per section 15 of the Income Tax Act. This includes salary due from an employer or former employer, salary paid or allowed to the employee, and arrears of salary not charged to income tax in any earlier year. The definition of salary under section 17(1) is inclusive and covers various incomes, including wages, annuity or pension, gratuity, fees, commissions, perquisites, and profits in lieu of or in addition to any salary or wages. Deductions are allowed under section 16, including a standard deduction of up to ₹50,000, deduction for entertainment allowance, and deduction on account of any sum paid towards tax on employment. The amount arrived at, after allowing these deductions, is the income under the head “Salaries”.
Understanding the basics of salary and income tax is important for every individual. The amount of tax that an individual has to pay depends on various factors such as the income level, tax slab, deductions, and exemptions available. It is important to file tax returns on time and to ensure compliance with the tax laws to avoid penalties and legal consequences. Individuals should also be aware of various tax planning strategies such as investing in tax-saving instruments, taking advantage of deductions and exemptions, and utilizing various allowances to minimize their tax liability.
i. Primary Sources (Statutes)The
ii. Secondary Sources
[1] See CIT v. Pramod Kumar Jain 216 ITR 598 (Raj); CIT v. Ghansham Dass 254 ITR 355 (P&H).
[2] See CIT v. Sardar Arjun Singh Ahluwalia 240 ITR 693 (SC).
[3] Section 89 reads, “Where by reason of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed.”
[4] See CIT v. Manmohan Das 59 ITR 699 (SC).
[5] See Raghunathan TM v. CIT 231 ITR 826 (Mad).
[6] CIT V. S.P. Jain 167 ITR 161 (SC).
[7] See Ram Prashad v. CIT, 1973 AIR 637.
[8] CIT v. Shankar Krishnan 349 ITR 685 (Bom).
[9] CIT v. Dr. P.L. Meyyappan 244 ITR 543 (Mad).
[10] CIT v. Wipro Systems 325 ITR 234 (kar).
[11] Sugra Sulaiman v. CIT 181 ITR 444(Mad).
[12] Gwalior Sugar Co. Ltd. v. CIT 224 ITR 321 (MP).
[13] P.N. Tiwari v. UOI 265 ITR 224 (All).
[14] Allowances comprise Dearness allowance, Overtime allowance, Medical allowance, City Compensatory allowance, Interim allowance, Servant allowance, Project allowance, Tiffin/Lunch/Dinner allowance, Warden allowance any other cash allowance as has been held in CIT v. Dr. PL Meyappan (2000) 244 ITR 542 (Mad).
