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Amount transferred other than salary

Tax queries 589 views 9 replies

Dear Team Members,

I am an employee working for a logistic firm. As a part of job, i used to travel a lot and my company used to transfer funds in my salary account as Travel Advances. Further to pay the salary of new joiners, they use to transfer in my account and i use to pay the same.

Now, the matter is my bank statements shows huge amount credited in my account other than the salary. 

Although my colleague told me that while Filing the return we need to consider only Salary and nothing else and that which I am aware of but I am afraid regarding the remaining part of the amount as it is credited in my account. Sooner or later if it reflects in my IT or PAN, what should be done. 

Should I need to get any letter or such document from the company claiming it as Travel expense and not an income of the employee. 

Kindly advise 

Replies (9)

You are right. You may obtain a declaration from the company stating the details of credit in your salary account which are not all your income.

For your Travel reimburshments i dont think there will be issue, but you should avoid the third party transactions that is rooted through your account in future.

At end of F.Y. you will take a decleration from company for which amount not related to you.

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Better you open a current account thru company and make all company transaction other than salary thru that account.

Dear All,

Thanks for your valuable feedback. Based on this, I have requested my company mgmt to provide the same and they agreed to do so if in case any dispute/issues occur while or after submitting the IT returns

 

Sreejith

Sounds like quite a situation and a lot to explain if anyone raises the question. If I were you I would set up a separate account for this kind of transfers too. Gosh, I had a separate one for the assignment writing service to review in college, haha

Please, write here if you find a better solution.

 

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