Meaning of Income from Salary{Basis of Charges} Section - 15Computation of Income from SalaryDEDUCTION FROM GROSS SALARY U/S 16For Different Purpose Salary MeansMeaning of AllowancesTypes of Allowances:1. Fully Taxable Allowances (20)2. Partly Exempted Allowances(A) House Rent Allowances(B) Allowances for duty Performance(C) Allowances exempt up to specified limit3. Fully Exempted Allowances (3)FULLY TAXABLE ALLOWANCES:1. Dearness Allowance or dearness pay 2. Medical allowance3. Servant allowance 4. Non practicing allowance5. Warden allowance 6. Procter allowance 7. Over time allowance 8. City compensatory allowance9. Family allowance or marriage allowance10. Project Allowance11. Deputation allowance12. Lunch allowance or Tiffin allowance13. Dog allowance14. Entertainment allowance15. Special allowance16. Rural allowance17. Telephone allowance18. Transport allowanceand other AllowancesPartly Exempted Allowances(1) House Rent Allowances(2) Allowances for duty Performance(3) Allowances exempt up to specified limitProvident Fund: Contents 1. A fixed amount deducted out of salary 2. To secure the future 3. Motivation to little saving 4. Amount return on retirement or death 5. Amount used by government to the development of country 6. Provident fund contribution goes to finance ministry (provident fund commissioner)Meaning and kinds of Provident FundKinds of Provident fund:(i) Statutory/Govt. Provident Fun(ii) Recognized Provident Fund(iii) Un Recognized Provident Fund(iv) Public Provident FundProvisions relating to Provident FundMeaning of PerquisitesClassification of Perquisites1. Perquisites taxable in the hands of all employee2. Perquisites taxable in the hands of specified employee = 5 points3. Perquisites exempt/ tax free for all employee = 18 pointsGrading:Meaning of GradingSpecified Employee