If an employee is paid advance against salary for the FY 2010-2011, will that advance be treated as part of his salary and taxed in the AY2011-12 ?
Advances paid is a running account - means there is a continuous debit and credit in the account. Advance paid will be adjusted with the salary payable in the subsequent months.
Thanks
As per my knowledge same shall become part of salary..........
i hope you are mis interprtaing between the words salary and loan....................
If it is Advance against salary than it will take form of "Loan against advance" and will not be part of the salary.
On the other hand if it is a advance salary than it will be part of salary and will be taxable.
Regards
Dayananda
Ya if it is advance salary than it will be included in salary of p.y.10-11.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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