Question on annual income calculation
This query is : Resolved
06 April 2017
If February salary is given in April, is there any rule to pay tax for the month of February in the current financial year or in the next financial year.
07 April 2017
give me answer sir
19 July 2025
Taxability of Salary — Payment vs. Accrual
Under Income Tax law, salary income is taxed on the basis of actual receipt (payment basis), not on accrual basis (unless your employer follows some other accounting method, but for salary it’s mostly payment basis).
So, if February salary is paid in April (next financial year), it is taxable in the financial year in which it is actually received, i.e., the next financial year.
Under Income Tax law, salary income is taxed on the basis of actual receipt (payment basis), not on accrual basis (unless your employer follows some other accounting method, but for salary it’s mostly payment basis).
So, if February salary is paid in April (next financial year), it is taxable in the financial year in which it is actually received, i.e., the next financial year.
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