03 July 2015
what is the tax treatment if employee getting performance incentive (which was pending finalization ) as an advance in 2005 to 2008 say rs 200000.00 and tax was deducted rs 20000.00 each year but he is going to retire in 2015 and incentive scheme is still not finalized and recovery is to be made from his gratuity including earned leaves payable to him.
The question is that amount may be recovered after applying the tax provisions of gratuity and leave encashment or recovery may be made upfrontly from the gross amount of gratuity and leave encasement and then apply tax provisions.
CAclubindia
