Section 15- Salaries
Section 15 of the Income Tax Act, 1961 states that the income of an assessee is to be charged under the head of “Salaries”.
It states that the following income shall be chargeable under the head “Salaries” in income tax:-
Salary due from a former employer or a current employer in the previous year, whether it is paid or not;
Salary paid or allowed in the previous year by a former employer or current employer or paid on behalf of a former employer or current employer whether not due or before it became due to him;
Any arrears of Salary paid or allowed in the previous year by a former employer or current employer or paid on behalf of a former employer or current employer, whether not charged to income tax for any earlier previous year.
Section 15 of the Act also contains two explanations. The first explanation states that when the total income for any previous year includes any salary paid in advance, the Salary would not be included again in the total income when such Salary becomes due.
The second explanation states that for Section 15, any salary, commission, remuneration, or bonus due to or received by a firm partner from the firm would not be regarded as “Salary”.