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Monday, November 28, 2011

Income from Salary Definition

Definition of salary


Hare you will find different types of definition salary




Simply we say salary means Fixed compensation for services, paid to a person on a regular basis.

Generally salary means periodical payment made for work to an employee from an employer for the services rendered to him.

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Salary is a fixed amount of money or any type compensation paid to an employee by an employer in return for work performed.

Salary is financial compensation an employee receives for performing the job, and part of an employee compensation package.

Definition of Salary by income tax ordinance




According to Section 2(58) of the Income tax Ordinance, 1984, Salary includes:

01. any wages;
02. any annuity, pension or gratuity;
03. any fees, commission, allowances, perquisites or profits in lieu of, or in addition to salary or wages;
05. any advance of salary;
06. any leave encashment.

Salary income is taxable by the federal, state, and local government, where applicable, through payroll withholding.



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