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Full and final received in april 2014

Tax queries 435 views 2 replies

Hi,

I resigned from my company on 9th Feb 2014.My company is supposed to pay me, performance bonus for 2013-14, leave encashment for 2013-14 and ERP bonus.

Till 9th feb they have deducted TDS and now they are going to give me full and final amount in april 2014.

I like to know whether on above mentioned amount they are supposed to deduct tax based on assesment year 2014-15 or 2015-16.

IMO I'm receiving this full and final amount in april 2014 so it should be part of assessment year 2015-16.

Thanks!

Replies (2)
Hi rakesh.. Salary income is taxable on basis of - due or receipt whichever is earlier.. Full n final amt you recd in April 14 is when became due.. If it became due in FY 13-14, den company can deduct TDS for AY 14-15.. In respect of other payments like bonus, leave encashment - they are toh definitely due in FY 13-14

income should be included in income of F. Y. 2013-14 because right to receive those amount become excerciseable in feb 2014 when its was become due.


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