If company paid Rs. 5 Lakh as advance (interest free) to an employee during the year, then what are the liabilites will arise (Income, TDS etc)
Thanks
Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
17 December 2010If company paid Rs. 5 Lakh as advance (interest free) to an employee during the year, then what are the liabilites will arise (Income, TDS etc)
Thanks
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 17 December 2010
In my opinion it is normal type of advance and will not attract any tds provision.
Regards
M.s.Kabra
NARAYAN
(Ca final)
(40 Points)
Replied 17 December 2010
Hi
Advance salary is treated as Salary but advance against salalry is different Advance against salary is just like loan
Regards
Narayan
Gilbert Mendonca
(Associate General Manager- Taxation )
(21 Points)
Replied 18 December 2010
Interest free adavcne against salary will have to be considered for valuation of perquisite, viz: concessional interest. Perquisite in interest rate concession has to be valued at the rate of interest charged by State Bank of India for such loans
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 18 December 2010
Advance of salary is taxable. But advance against salary is not taxable. When the amount is taxable, there is no scope for TDS. Hence, tax need not be deducted at source.
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