Advance

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Ravikant Dwivedi (Querist)
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15 December 2016 I am govt servant and recently as per rule on transfer of place of posting,I have taken advance equal to the 2months basic pay which will be deducted from my sallary every month in 36 installment. Here I want clarification that whether in this year this advance taken amount will be considered in my annual income and income tax will be levied or not?

ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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15 December 2016 It is recevrable advace & hence not being income does not attract income-tax.

Sandeep Dharar

Sandeep Dharar (Expert)
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15 December 2016 If it is taken as advance then it will not b taxed as it is not ur income, and tax is imposed on income. As this is advance from ur employer, hence I'll suggest u to make a contract showing the loan amount and the repayment schedule so that u can show it to department in case department ask clarification regarding that money.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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15 December 2016 Advance salary not considered as income same will be adjusted in future salary so Taxable arise as and when you receive income as salary.

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