Section 17 → Section 22
Meaning of Salary, Perquisite, and Profits in lieu of Salary
Quick Answer
Section 17 of the Income Tax Act, 1961 (Meaning of Salary, Perquisite, and Profits in lieu of Salary) corresponds to Section 22 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 17
Provision Summary
Defines what constitutes salary, various perquisites (rent-free accommodation, ESOPs), and profits in lieu of salary.
Sec 22
Provision Summary
Definition broadened. ESOPs taxation simplified and aligned directly with startup DPIIT recognition status.
Key Changes & Highlights
- Valuation rules for Rent-Free Accommodation (RFA) streamlined and embedded directly into the primary section.
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Frequently Asked Questions
What does Section 17 of the Income Tax Act 1961 deal with?
Section 17 (Meaning of Salary, Perquisite, and Profits in lieu of Salary) Defines what constitutes salary, various perquisites (rent-free accommodation, ESOPs), and profits in lieu of salary.
What is the new section number for Section 17 under the Direct Tax Code 2025?
Section 17 of the ITA 1961 maps to Section 22 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 17 under the new tax code?
Section 17 is marked as "Retained" with status "Modified". Impact: Medium - Simplifies payroll processing for HR departments.
What are the key changes to Section 17 under DTC 2025?
Valuation rules for Rent-Free Accommodation (RFA) streamlined and embedded directly into the primary section.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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