Section 269ss & st & 192

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2012 Respected Sir,

1) We have given Salary of Rs. 240000 this year but forget to deduct tax at source, so we have shown Rs. 60,000 as Loan and advance.

Now can we set off the same against salary of next year by adjusting entry ???

2) Mr. A gives a loan of Rs. 100000 to Mr. B,
Mr. B gives a loan of Rs. 100000 to Mr. C,
Mr. C have to take Rs. 100000 from Mr. A.

Now my question is can we Set off all the Loan by Adjustment ???

Kindly do reply as early as possible...

Thanking you in advance...

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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25 September 2012 1) For salary, it can be shown like salary advance.But take care that cash in excess of Rs.20,000/- is not given.Next year it can be set off against the salary to be given.
2) The Journal entries can be passed which will not be treated as cash repayment.But keep documentary proofs for such adjustments with third party evidence.

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