excess payment of salary

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radhika (Querist)
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18 February 2009 more salary has been paid to md
this excess payment is recovered during current year by way of deduction from salary andgetting cheque in the name of co.
plz tell me whether net salary will be taxable or actually earliar paid

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 February 2009 If the salary refunded is in view of legal requirement contained in The Companies Act,1956 and refund is not voluntary then,only net salary is taxable. Citation:-
CIT Vs. Raghunath Murti (2008) 220 CTR (Del)102.

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