Income from Salary

Income from salary includes wages, bonuses, allowances & more. Learn its components & how to calculate it.
OPEN FD
Income from Salary
OPEN FD
4 min
31-October-2025

Income from salary refers to the remuneration you receive from your employer in exchange for your work. This includes your basic salary, allowances, bonuses, and benefits. In India, salary income is taxable under the Income Tax Act, 1961. Your total tax liability depends on deductions and exemptions available under sections such as 80C, 80D, and HRA.

Understanding how each component of your salary affects taxation can help you plan better and ensure you retain more of your earnings. A well-structured salary not only supports financial stability but also lays the foundation for long-term wealth creation.

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Components of salary

A salary is more than just your monthly credit — it comprises multiple components that influence your taxable income and take-home pay.

1. Basic salary

The fixed portion of your salary that forms the foundation for calculating other benefits such as PF, gratuity, and bonuses.

2. Allowances

These include HRA, DA, travel, or medical allowances. Some allowances are taxable, while others offer exemptions — helping you save tax.

3. Perquisites

Also known as perks, these are additional benefits like rent-free housing, company cars, or stock options. Some are taxable based on their value.

4. Deductions

These include PF contributions, professional tax, and TDS — all of which help reduce your taxable income.

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Ways to check your tax deductions from salary

Tax deducted at source (TDS) directly impacts your in-hand salary. Monitoring your deductions ensures accuracy and prevents surprises at the time of filing returns.

Reviewing salary slips

Your monthly payslip provides a detailed breakdown of income, allowances, and TDS. Reviewing it regularly helps verify correct tax computation.

Form 16 and income tax portal

Your employer issues Form 16 each year, which shows the total salary paid and taxes deducted. You can also log in to the income tax portal and check Form 26AS for a consolidated view of TDS and tax credits.

While you manage your taxes, let your idle savings grow in a Bajaj Finance FD with high, guaranteed returns and flexible payout options. Book FD. 

Fixed Deposit

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  2. Fixed Deposits worth more than Rs. 50,000 crore booked
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  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

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Conclusion

Understanding income from salary — from its structure to tax implications — is essential for effective financial planning. By optimising your salary components, claiming eligible deductions, and reviewing payslips, you can enhance your take-home pay and overall financial health.

For those looking to grow their savings securely, Bajaj Finance Fixed Deposits offer one of the safest and most rewarding options. Backed by AAA ratings from CRISIL and ICRA, they provide stable returns of up to 7.30% p.a. with flexible investment tenures.

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Frequently asked questions

What is the income from salary?
Income from salary refers to earnings received by an individual from an employer in exchange for services rendered. It includes basic salary, allowances, perquisites, and bonuses. This income is taxed under the Income Tax Act, 1961, and is subject to deductions such as provident fund contributions, professional tax, and tax exemptions on specific components.

What is income from salary section 15 to 17?
Sections 15 to 17 of the Income Tax Act, 1961, define salary income taxation in India. Section 15 determines the chargeability of salary, Section 16 provides deductions from salary, and Section 17 defines salary components, including perquisites and allowances. These sections help classify taxable and non-taxable salary components, ensuring proper tax calculations for employees.

Can I get monthly income from my Bajaj Finance FD?

Yes, Bajaj Finance offers non-cumulative FDs that pay interest at regular intervals—monthly, quarterly, half-yearly, or annually—helping you manage steady cash flow post-retirement or for routine expenses. Check rates.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

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