Computation of Income from Salary under Income Tax Law with Tax Planning

Computation of Income from Salary under Income Tax Law with Tax Planning as Amended by the Finance Act, 2025 by Ram Dutt Sharma is a comprehensive and user-friendly guide that demystifies the intricacies of salary taxation in India. Designed for professionals, HR managers, payroll officers, and taxpayers, this book provides a detailed analysis of salary components, perquisites, exemptions, and deductions. With a practical focus on tax planning, it helps readers optimize their salary structure within the legal framework. The 2025 edition incorporates all the latest provisions, changes in slabs, exemptions, and compliance requirements introduced through the Finance Act, making it an indispensable resource for accurate and efficient salary tax computation.

Key Features:

• Complete coverage of salary income computation under the Income-tax Act, 1961
• Updated as per the Finance Act, 2025, including changes in slabs and exemptions
• Practical insights on tax planning and salary structuring
• Includes guidance on perquisites, allowances, and deductions
• Useful for HR professionals, payroll managers, CAs, and individual taxpayers
• Supported by illustrative examples, charts, and FAQs for easy understanding

Introduction
Essential Characteristics of Salary
Different Forms of SalaryExempted Salary
“Income” Includes
Scope of Total Income
Deemed to be Received
Income Deemed to Accrue or Arise in India
Basis for Charging Income Under the Head ‘Salaries’
Deductions From Salaries
Meaning of Salary
Perquisites
“Profits in Lieu of Salary” includes
Salary not Treated as Income Under the Head ‘Salary’
Incomes which do not Form Part of Total Income
Treatment of Retirement Benefits
Treatment of Various Allowances
Treatment of Various Funds
Treatment of Salary of Foreign Citizen
Deductions to be From Gross Total Income of Salary
Taxation of Pensioners
Rebate of income-tax in Case of Certain Individuals
Rebate when Salary, etc., is paid in Arrears or in Advance
New Regime – Lower Tax Rate Option
Tax Deduction at Source from Salary
Tax Deduction at Source from Salary
Income Tax Rates
Important Forms