salary calculation

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Anish Jain (Querist)

07 November 2008 Sir,

please tell if i join a company on 1st November 2008. I will have to pay income tax on four months salary of five months salay because salary of march, 09 will be received in month of april.

IN other words income tax paid by salaried person is on receival basis or accured basis. Also tell same about bonus.

Anish Jain

Anish Jain (Querist)

07 November 2008 this question might be in the minds of many salaried employee. so please explain it.

Ram Avtar Singh

Ram Avtar Singh (Expert)

07 November 2008 accured basis, it will be added in March. payment can be made after a long day time in any cercomstances

Garima

Garima (Expert)

07 November 2008 Bonus is taxable on receipt basis. Therefore, it will be included in the gross salary only in the year in which the bonus is received . if bonus is received in arrears, the assessee can claim relief under section 89(1).

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