https://www.taxtmi.com/caselaws?id=276842 Exemption under the section 60 notification applied only where remuneration was paid out of profits or determined with reference to profits, the disallowance arose because of that mode of payment, and tax had been charged in the employer's hands; these conditions were cumulative. Fixed monthly salary did not satisfy that test because it was not shown to be linked to profits, and its disallowance as business expenditure did not make it exempt in the employee's hands. The bonus precedent was distinguished because bonus is inherently a profit-linked payment. The result was that the fixed salary remained taxable in the employee's hands. en-us Wed, 22 Jul 1959 00:00:00 +0530 Mon, 19 Nov 2018 13:02:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276842 Exemption under the section 60 notification applied only where remuneration was paid out of profits or determined with reference to profits, the disallowance arose because of that mode of payment, and tax had been charged in the employer's hands; these conditions were cumulative. Fixed monthly salary did not satisfy that test because it was not shown to be linked to profits, and its disallowance as business expenditure did not make it exempt in the employee's hands. The bonus precedent was distinguished because bonus is inherently a profit-linked payment. The result was that the fixed salary remained taxable in the employee's hands. Case-Laws Income Tax Wed, 22 Jul 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276842