Monday, 3 October 2011

TIPS forms part of Salary


S.15: Salaries‐ Profits in lieu of salary‐Tips collected and paid to employees. ( S.2 (24), 17
(1)(iv), 17(3)).
Payment of banquet and restaurant tips to the employees of assessee in its capacity as
employer constitutes salary with in the meaning of section 15 read with section 17 (3) .( A.Ys.
19999‐2000 to 2005‐06).
CIT v ITC Ltd (2011) 59 DTR 312/ 243 CTR 114 (Delhi) (High Court).

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