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Definition of Salary, Perquisite and Profit in lieu of Salary (Section 17): Income Tax on Salaries Circular No. 17/2014

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5.2 DEFINITION OF “SALARY”, “PERQUISITE” AND “PROFIT IN LIEU OFSALARY” (SECTION 17):
i. wages, fees, commissions, perquisites, profits in lieu of, or, in addition to salary, advance of salary, annuity or pension, gratuity, payments in respect of encashment of leave etc.

ii. the portion of the annual accretion to the balance at the credit of the employee participating in a recognized provident fund as consists of {Rule 6 of Part A of the Fourth Schedule of the Act}:
a) contributions made by the employer to the account of the employee in a recognized provident fund in excess of 12% of the salary of the employee,
b) interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by Central Government.

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