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Income tax on accrued salary

26 June 2016

I work for a startup. I have a salary but it is accrued (I can claim it when the startup makes money). Wanted to know and understand the tax implications on accrued salary.

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 26 June 2016

Mr.Krishnan, any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not is taxable.

Mohan (Audit Assisstant & Accounts Manager) (489 Points)
Replied 26 June 2016

Please check if tax is deducted in your salary, if yes then show the salary income in your return of income and claim TDS. However, if there is no TDS then not required to show salary on accrual basis, consider the income only when you actually receive.

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