Salary or Income form other sources sec 56(2)

[MITSUI PRIME ADVANCED]

Dear Sir,

Reward / performance Reward received from Employer by way of cheque amount rs. 35000/- but company show in salary slip ,

this is taxable under the head of salary

or any other way under section 56(2) , this is can treated as a gift

Please provide your advice

 

Regards

Arjun Sachdeva

 

[CAGOPALJI AGRAWAL]

It is none other than salary as rightly stated by company in pay slip.

AI Summary

Salary taxation: employer performance rewards shown on payslips are taxable as salary, not gifts for income tax purposes. Performance rewards paid by an employer and reflected on the employee's payslip constitute salary income for income tax purposes rather than gifts; when an employer records a reward or performance bonus in payroll and treats it as pay, it is taxable under the head of salary and does not qualify as a gift.