If an employee retired in December 2015 and he got his full & final in April 2016. My query is whether F & F amount is taxable in P.Y. 2015-16 or in P.Y. 2016-17 ?
If an employee retired in December 2015 and he got his full & final in April 2016. My query is whether F & F amount is taxable in P.Y. 2015-16 or in P.Y. 2016-17 ?
Taxable in FY 16-17, as Salary is taxable on reciept basis rather than Due Basis.
Taxable in PY 15-16
salary is taxable on due or receipt wchich ever is earliyer.
Salary is Taxed on the basis of Due or Received whichever is earlier.
@ above all...
Agree that basic rule of salary is due or recvd whichever is earlier, Same is also apply in case f advance salary also.
But this is case of arrears of salary, so here taxability arise in year f reciept as per prov f income tax.
Also TDS liab is arise at the payt of payment by emplooyer.
Pls correct if wrong.
Thanks
CAclubindia
