16.  Salary.-

(1)  The following incomes shall be chargeable under the head "Salary", namely:-

(a)    any salary due to the assessee from an employer in the income year, whether paid or not; and

(b)    any salary (including arrears or advances of salary) paid to the assessee in the income year by an employer:

       Provided that where any salary is included in the total income on the basis that it has become due to an assessee, it shall not be included again on the basis that it is paid.

(2)   For the purposes of sub-section (1),-

(a)    "salary" includes

(i)     any wages;

(ii)    any annuity, pension or gratuity;

(iii)   any fees, commissions, allowances, perquisites or profits in lieu of, or in addition to, salary or wages;

(b)    "perquisite" includes-

(i)     the value of rent-free accommodation;

(ii)    the value of any concession in the matter of rent respecting any accommodation;

(iii)   any sum payable by the employer, whether directly or indirectly, to effect an insurance on the life of, or to effect a contract for any annuity for the benefit of, the assessee, or his spouse or any dependent child;

(iv)   the value of any benefit provided free of cost or at a concessional rate;

(v)    any sum paid by an employer in respect of any obligation of an employee;

(c)    "profits in lieu of salary" includes-

(i)     the amount of any compensation due to, or received by, an assessee from his employer at, or in connection with, the termination of, or the modification of any terms or conditions relating to, his employment;

(ii)    any payment due to, or received by, an assessee from a provident or other fund to the extent to which it does not consist of contributions by the assessee and the interest on such contributions;

(d)    "employer" includes a former employer; and

(e)    "employee", in relation to a company, includes a managing director or any other director or other individual, who, irrespective of his designation, performs any duties or functions in connection with the management of the affairs of the company.