income from salary

This query is : Resolved

PANKAJ MISHRA (Querist)
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11 February 2009 Dear sir
Salary at the time of suspension period is taxable or not? (normally half salary for needy expenses)

CA. Harinder Kumar

CA. Harinder Kumar (Expert)
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12 February 2009 Yes it is vey much taxable. If your are receiving ii as salary. becuse there is nothing define in income tax as half salary and full salary. Moreover if after suspension period is over you will get arrear of salary as lumsum it will also taxable on receipt basis

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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12 February 2009 Agreed.

K V Subba Rao

K V Subba Rao (Expert)
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12 February 2009 Salary received during suspension period known as Subsistence Allowance is taxable.

Balance of salary may or may not be paid depending on outcome of disciplinary proceedings. In any case. Susbsistence Allowance is taxable.

If and when arrears are drawn, difference of salary is taxable in the year of actual receipt.

I think in such cases, provisions of sec 89 can be invoked