Hra eexemption

Others 344 views 1 replies

We have not paid 3 months salary to an employee and shall we considered the Rental payment receipts of that period for tax calculation.

Replies (1)

It depends on how you are going to treat the unpaid salary. If you want to consider the unpaid salary in total income then obviously you need to consider HRA part too for those unpaid period and vice-versa.

General rule is that salary income will be taxable on receipt basis & not on accrual basis. So neither you should consider unpaid salary as income nor HRA for claiming deduction as well.


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