Income Tax Bill Expands Salary Definition from 9 to 12 Components Under Clause 16, Replacing Section 17(1)

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....The Income Tax Bill, 2025 restructures the definition of "salary" through Clause 16, introducing significant organizational improvements over Section 17(1) of the Income-tax Act, 1961. The revised framework expands from 9 to 12 sub-clauses, providing clearer categorization of salary components including fees, commissions, perquisites, and profits. Key modifications include separate treatment of previously combined elements, updated references to pension schemes and provident funds, and retention of provisions for the Agniveer Corpus Fund. While maintaining fundamental taxation principles, the new structure offers enhanced clarity for employers, employees, and tax administrators through better segregation of compensation components and moder.........