“salary income taxable”

An employer making a bona fide estimate of taxable salary income is acting in accordance with established legal precedent.

The deduction of tax at source under section 192 is not to be considered short if the employer makes a bona fide estimate of the taxable salary income of the employee.

Salary received by a non-resident for services rendered outside India accrues outside India and is not taxable in India. Only salary earned for work performed in India is regarded as income arising in India and is taxable.

The definition of 'income' under section 2(24) is inclusive, adding artificial categories without losing its natural connotation. Perquisites under section 17(2) are taxable as 'salary' when paid by an employer on behalf of an employee to discharge an obligation the employee would otherwise bear.

Payments made by an employer towards pension or annuity schemes are not taxable as perquisites in the hands of the employee unless the employee has acquired a vested right in the sum paid. Similarly, employer contributions to approved superannuation funds are not perquisites if the employee has no vested right.

Income derived by a non-resident for performing services in India is taxable in India, even if the payment is received outside India and the individual is not a resident of India, provided the services are rendered within the territorial limits of India.