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)
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Advance against salary
Replies (4)
In my opinion it is normal type of advance and will not attract any tds provision.
Regards
M.s.Kabra
Hi
Advance salary is treated as Salary but advance against salalry is different Advance against salary is just like loan
Regards
Narayan
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
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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