Section 16 — the law in short
What the courts have decided on section 16, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v Gopal Krishna Suri
High CourtHelps departmentHigh Courts differ
I spend my own money to earn the incentive part of my pay. Can I deduct that expenditure before the amount is taxed as salary?
No. Once a receipt falls under the head Salaries, the only deductions available are those s.16 allows; there is no provision permitting expenses incurred to earn salary to be taken out at the threshold, and 'income' in s.15 does not mean net of such expenses. An LIC development officer's incentive bonus is in the nature of commission, falls within the inclusive definition of salary in s.17(1)(iv), and is taxable in full.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.