For Income tax purposes financial year is April to March but in govt organization year will be from March to Feb
How to issue form 16 in this case ? March to Feb , is it right ?
Replies (9)
Quick Summary
Government organisations often use a financial year that runs from March to February for salary purposes, even though the Income Tax financial year is April to March. This is because government salaries are typically taxed on a due or received basis, and the March salary is often paid and due in April. Consequently, Form 16 reflects the salary period from February to March to align with tax regulations.
As per income tax salary is taxable on due or received basis and government service salary due on 1st of next month, so march salary received and due in April.Β That's the reason for taking salary from Feb to March