Tax on salary not received

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This query is : Resolved

Bhargav Thakkar (Querist)

30 July 2016 Dear Sir,

My client is director in unlisted limited company.Company is loss making and yet not paid salary to director and showing it in Balance sheet as Salary payable.

The query is such unrealized salary can be taxed in hands of director?

Claim is that salary not received then how can he pay tax on such income?

Please guide me what is the right move?

Thank you

suresh

suresh (Expert)

30 July 2016 The employer must have deducted the tax at source and paid the tds as per the provisions of tax laws as the salary shown as payable. In that case the employee has also to show the income under the head as salary which is due but not received.

Bhargav Thakkar

Bhargav Thakkar (Querist)

30 July 2016 The company also had not deducted and deposited TDS to govt and not provided form 16.

Then whether to show and tax the salary not received in ITR or not?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

30 July 2016 Income should be booked on Accrued Basis , Director Can discharge Income Tax based on Form-16 calculation, When actual Received than time he need not Pay tax.

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