07 December 2013
SALARY MEANS EMPLOYEE & EMPLOYER RELATION MUST BE EXIST, IF NO EMPLOYEE EMPLOYER RELATION SHIP IT MEAN SUCH RECEIPT IS NOT SALARY, MINISTER OF GOVT IS NOT EMPLOYEE OF GOVT. HE IS EMPLOYER, SO AMOUNT RECD BY A MINISTER TAXBEL IN THE INCOME FROM OTHER SOURCES
07 December 2013
WHAT IS “SALARY” 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 actual receipt of salary in the previous year is not material as far as its taxability is concerned. The existence of employer-employee relationship is the sine-qua-non for taxing a particular receipt under the head “salaries.” For instance, the salary received by a partner from his partnership firm carrying on a business is not chargeable as “Salaries” but as “Profits & Gains from Business or Profession”. Similarly, salary received by a person as MP or MLA is taxable as “ Income from other sources”, but if a person received salary as Minister of State/ Central Government, the same shall be charged to tax under the head “Salaries”. Pension received by an assessee from his former employer is taxable as “Salaries” whereas pension received on his death by members of his family (Family Pension) is taxed as “Income from other sources”.
07 December 2013
Mr. Dheeraj, before to advise, please look in to the all aspect of all provision.
Section-13A exempt the income of political parties except the salary income & PGBP income, perhaps, for the salary income, major of allowance are exempted in section-10, moreover, the basic part of salary is taxable but it is excluded by issuing a notification.
Also, Supreme Court Jury salary is also exempted..
09 December 2013
Mr. Sanjeev G, Please note Proper Section with subsection of exemption of salary of minister, as per knowledge and study i didn't get solution for salary is exempt in the hand of minister/mp/mla etc.
and sir you saying about 13A, which is denote for ploletical party not for poletion (indivisual), likp mp, mla, parsad all political person get salary and such salary is taxabel in the head of other sources and if such person receive allowances the such allowance is exempt u/s 10(17)
Section 13 A of the Income Tax Act deals with the exempt Income of the Political Parties in India. Section 13A has been inserted in the Income Tax Act 1961 by the Taxation Laws (Amendment) Act 1978 and has come into effect from 1.11.1979. "Political Pary" for the purpose Section 13A of the Income Tax Act means a political party registered under Section 29A of the Representation of the People’s Act 1951 (43 of 1951).
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