1989 (4) TMI 58

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..... additional dearness allowance, city compensatory allowance and house rent allowance form part of the "salary" of the salaried employees represented by the petitioner-Union and whether the said allowances are taxable under the Income-tax Act under the head "Salaries". This contention does not survive in view of the amendment to section 2(24) of the Income-tax Act, 1961 ("the Act"), by the Direc .....

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..... al allowance or benefit, etc., specifically granted to the salaried persons to meet the expenses wholly, necessarily and exclusively for the performance of the duties of an office or employment of profit. This amendment sets at rest the controversy whether the special allowances paid to the salaried persons enumerated above are includible in their "income" as defined under section 2(24) of the Act .....

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..... e of remuneration of an employee by an employer is taxable under the category "Salaries". The term "income" is very wide in its import. All allowances received by salaried persons are taxable under the Act unless expressly exempted. These payments made in the form of allowances and special allowances accrue and are received by the salaried person by virtue of his office and employment. For t .....

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