Exgratia is axable on receipt or accrual
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 November 2015
Dear All,
My company is deducting Certain amount from my salary as exgratia which is pay at diwali occassion in next year. Please tell me whether this amount is taxable on actual receipt basis or on accrual basis.
Thanks in Advance
My company is deducting Certain amount from my salary as exgratia which is pay at diwali occassion in next year. Please tell me whether this amount is taxable on actual receipt basis or on accrual basis.
Thanks in Advance
CA Kumar Mukesh
(Expert)
05 November 2015
As per section 17 of Income Tax Act 1961, salary will be taxable on
Due basis
or Advance
Whichever is earliest.
Therefore, in your case ex-gratia will be taxable on due basis i.e. when salary become due.
Thank You...
Due basis
or Advance
Whichever is earliest.
Therefore, in your case ex-gratia will be taxable on due basis i.e. when salary become due.
Thank You...
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