Salary taxation on cash basis
This query is : Resolved
18 June 2014
Hello,
Unpaid salary Taxation :
As an employee during the year, can I declare salary actually received thereby postponing my tax liability on unpaid salary considering cash basis of accounting. Is it allowed
Employer has issued form 16 to the extent salary paid to employees.
Kindly revert back
Hello,
Unpaid salary Taxation :
As an employee during the year, can I declare salary actually received thereby postponing my tax liability on unpaid salary considering cash basis of accounting. Is it allowed
Employer has issued form 16 to the extent salary paid to employees.
Kindly revert back
CA. Nage Gowda
(Expert)
19 June 2014
cash basis of accounting is allowed only in respect of income under the head profits and gains of business or profession and income from other sources and not in respect of other heads.
As per section 15 of the Act Salary shall be taxed either on due basis or cash basis which ever event occurs earlier.
Therefore there is no question of postponing of salary to the next year on cash basis.
It is true that TDS u/s 192 on salary needs to be made on cash basis. Your employer has correctly issued that Form 16.
cash basis of accounting is allowed only in respect of income under the head profits and gains of business or profession and income from other sources and not in respect of other heads.
As per section 15 of the Act Salary shall be taxed either on due basis or cash basis which ever event occurs earlier.
Therefore there is no question of postponing of salary to the next year on cash basis.
It is true that TDS u/s 192 on salary needs to be made on cash basis. Your employer has correctly issued that Form 16.
Rupesh Jain
(Expert)
19 June 2014
cash basis for salary income is not allowed.
income taxable as per received or due which ever is earlier. but TDS will deducted the employer only on time of make payment.
income taxable as per received or due which ever is earlier. but TDS will deducted the employer only on time of make payment.
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