Section 15
Section 15: salaries
Section 15 is the charging section that brings salary income into tax under the head "Salaries". It fixes exactly which payments are taxed and when - salary that has become due, salary actually paid even before it is due, and arrears of salary not taxed earlier.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What is chargeable under "Salaries"
Section 15(1) charges to tax under the head "Salaries":
- Any salary due from an employer to the assessee in the tax year, whether paid or not.
- Any salary paid or allowed to the assessee in the tax year by or on behalf of an employer, even if it was not yet due or before it became due.
- Any arrears of salary paid or allowed to the assessee in the tax year by or on behalf of an employer, if it was not already charged to tax in an earlier tax year.
Other rules in this section
"Employer" for this purpose includes a former employer (section 15(2)).
If salary paid in advance has already been included in a person's total income for a tax year, it is not taxed again in the year it actually becomes due (section 15(3)).
Any salary, bonus, commission or remuneration (by whatever name called) due to or received by a partner from their firm is not treated as "salary" under this section (section 15(4)) - such amounts are taxed differently, under the business/profession provisions applicable to firms and partners.
Frequently asked questions
Is salary taxed only when it is actually paid?
No - Section 15(1) taxes salary that is due (whether paid or not), salary actually paid or allowed before it becomes due, and arrears of salary not already taxed earlier - so due-but-unpaid salary is still taxable in the year it becomes due.
Is a partner's remuneration from their firm taxed as 'salary'?
No - Section 15(4) specifically excludes a partner's salary, bonus, commission or remuneration from a firm from being treated as salary under this section.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026