please tell if i join a company on 1st November 2008. I will have to pay income tax on four months salary of five months salay because salary of march, 09 will be received in month of april.
IN other words income tax paid by salaried person is on receival basis or accured basis. Also tell same about bonus.
07 November 2008
Bonus is taxable on receipt basis. Therefore, it will be included in the gross salary only in the year in which the bonus is received . if bonus is received in arrears, the assessee can claim relief under section 89(1).
CAclubindia
