Salary Income Tax Incidence and Optimisation

The phenomenal growth of the Indian economy has resulted in a large number of CXOs, managerial personnel and salaried income tax filers. In India, we are estimated to have 8.50 crore tax-filers and the salaried employees and managerial personnel constitute the largest segment out of the same. In case of senior management personnel, with the highest personal tax rate of 39%, the tax incidence can be quite steep with limited avenues for optimisation. As a result, it is important to have a precise understanding of the tax incidence, tax exemptions and deductions, new regime vs. old regime election, benefits taxed at concessional rates, treaty benefits and foreign tax credits for expatriate employees, taxation of ESOPs and so on.

In this publication, we intend to offer a broad outline of various tax regulations currently prevailing and relating to income from salaries under the Income-tax Act, 1961.

The broad areas covered in this publication include:

Introduction

Basics of Indian Tax Law

Tax Rates and Computation

Certain Allowances and Relief

Perquisites

Certain Deductions and Exemptions

Expatriate Taxation – Working in India

Duties and Obligations of Employer, Penalties and Prosecution

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – Key Highlights

Also, this present edition incorporates amendments made up to the Finance Act, 2023.

We hope you find the same useful.free to revert.