Hi,
Please can any one tell me about the ADVANCE SALARY Paid to Our Employee which will be taxable income in the hands of employee under salaried income.
Please reply soon its urgent..............
Shashikant
Bangalore
900847820
IPCC Student
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Income from salary
Replies (5)
1 .Advance salary is taxable when it is received by the employee irrespective of the fact whether
it is due or not
2. WHEREAS Advance against salary is different from advance salary. It is an advance taken by
the employee from his employer. This advance is generally adjusted with his salary over a
specified time period. It cannot be taxed as salary on reciept basis
Advance against salary that is to be adjusted later is not taxable.
say mr x has taken advance against salary in 2013-2014 of 20000. it is not taxable as income of 2013--2014.
it is the advance salary which is taxable in year of reciept
Depend on it ,due or paid , taxable if paid
Under salaries income is taxable on "due" or "receipt" whichever is earlier basis. Therefore, advance salary is taxable in the year of receipt.
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