After every entry, balances are included. Government Securities Certificates of proprietorship or obligation, pertaining to stocks and bonds issued by the Government. When an employee leaves the service of his employer after 5 years, gratuity is paid as a reward for long and meritorious service. The gratuity is tax free in part or in full. Ground Rent Lease rent is payable only in the case of a lease hold property.
Ground rent is allowable as a deduction on accrual basis.
Top Heads of Income Total income is calculated by adding the different types of income, classified under various heads for the purpose of calculating income-tax. Hybrid System of Accounting A mixed system of accounting is used for different transactions. Sometimes a cash system of accounting is used for some transactions and a mercantile system of accounting is used for other transactions. An allowance paid to an employee to meet the hostel expenses on his child. This allowance is also paid in the way of educational allowance.