Dear Sir / Madam,

Festive Greetings!
India’s economic growth has led to a significant rise in CXOs, managerial professionals, and salaried taxpayers. With an estimated 9.19 crore tax-filers, salaried employees and managerial personnel form the largest segment, especially those in senior management who face a high personal tax rate of up to 39%. Given this, it’s essential to navigate tax incidence, available exemptions, deductions, and regime choices effectively, along with understanding the tax implications on ESOPs, expatriate benefits, treaty benefits, and more.

In this publication, we’ve compiled an overview of key tax regulations under the Income-tax Act, 1961, specifically related to income from salaries. The guide covers essential areas, including:
• Introduction to Indian Tax Law
• Tax Rates and Computation
• Key Allowances and Reliefs
• Perquisites
• Deductions and Exemptions
• Expatriate Taxation – Working in India
• Employer Responsibilities, Penalties, and Prosecution
• The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
• Section wise Mapping of Relevant Provisions (Income Tax Act, 1961 vis-à-vis Income Tax Act, 2025)

This edition includes updates up to the Finance Act, 2025 including a brief overview of the Income Tax Act, 2025 and aims to assist you in understanding and managing tax responsibilities effectively.

We hope you find this resource helpful and encourage you to reach out with any questions or requests for further clarification. Thanks.

RSM India Publication - Salary Income - Tax Incidence & Optimization 2025_opt-compressed.pdf