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Meaning of Income from Salary - RetirementContents: 1. Any Income shall be chargeable to tax under the head salary if there exists a relationship of employer- employee between the payer and the payee. Example:- Family pension, receipt from Firm by partners, MP/MLA remuneration, Director fees etc. 2. It does not matter whether the employee is a full-time employee or a part time employee. 3. Section 15(1)- salary income shall be chargeable to income tax on due basis or receipt basis which ever is earlier. 4. Salary due on last day of month v/s salary due on 1 st day of next monthGratuity [Section 10 (10)]: Meaning of Gratuity Classification of Employee:Government EmployeeNon. Government Employee Important Note:1. If gratuity received during the service period then it is fully taxable. 2. If gratuity is received by family member of employee due to death of employee then it is partly taxable in income from other sourceComputation of taxable part of Gratuity, in the case of employee covered by the payment of Gratuity Act 1972Computation of taxable part of Gratuity, in the case of employee not covered by the payment of Gratuity Act 1972Leave Encashment [Section 10(10AA)]: Meaning of Leave EncashmentGovt. Employee - Fully exempt Non. Govt. Employee - Partly ExemptImportant Note:1. If Leave Salary received during the service period then it is fully taxable. 2. If Leave Salary is received by family member of employee due to death of employee then it is fully exempt. 3. Allowed periodComputation of Taxable Part of Leave EncashmentPension [Section 10(10A)]: Meaning of Pension1. Un commuted Pension2. Commuted PensionComputation of Taxable part of Commuted pensionRetrenchment Compensation [Section 10(10B)]: What is Retrenchment CompensationVoluntary retirement compensation [Section 10(10C)]

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