Advance Salary available in Balance sheet
This query is : Resolved
26 December 2021
Dear Sir,
From a Pvt Ltd company I have made a Salary payment of around Rs. 6 lac in parts to a single employee after deducting T.D.S in F.Y. 2018-19 from which Rs. 4 lacs was shown as a Salary expense and Rs. 2 lacs was shown as Advance Salary given in that year in the company's Books of accounts.
Can I book this Advance Salary as company's salary expense in F.Y. 2020-21 to reduce Profit.
The counter party has already shown this entire salary amount of Rs. 6 lac as income received in his books of accounts in F.Y. 2018-19 while filing his Income tax return.
Please advise me on this matter.
Regards,
Divyesh Jain
From a Pvt Ltd company I have made a Salary payment of around Rs. 6 lac in parts to a single employee after deducting T.D.S in F.Y. 2018-19 from which Rs. 4 lacs was shown as a Salary expense and Rs. 2 lacs was shown as Advance Salary given in that year in the company's Books of accounts.
Can I book this Advance Salary as company's salary expense in F.Y. 2020-21 to reduce Profit.
The counter party has already shown this entire salary amount of Rs. 6 lac as income received in his books of accounts in F.Y. 2018-19 while filing his Income tax return.
Please advise me on this matter.
Regards,
Divyesh Jain
26 December 2021
Yes, you can expenses such advance payment no problem.
26 December 2021
Ok, Thanks a lot for your reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR validation error - Balance sheet is not filled
- Article ship defecit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
