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INCOME TAX PAID ON SALARY AT DUE BASIS

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MNB Murthy

Proprietor

22 Points Posted on 15 April 2024

Hello Sir/madam,
One of our client has received salary of 10 months relating to 2022-23 in next F.Y.2023-24. As per salary concept we have shown salary on due basis in F.Y.2022-23 and paid respective tax on the same. Now the problem is that, the drawing officer(employer) is asking our client to pay the tax on salary of F.Y.2022-23 which is credited by them in the F.Y.2023-24 on which we have already shown in F.Y.2022-23 and paid the tax. How can he legally avoid the same.

Thanking you

Replies (3)

Quick Summary

A client received 10 months of salary for FY2022-23 in the following financial year, FY2023-24. Tax was correctly accounted for and paid on a due basis in FY2022-23. However, the employer is now requesting the client to pay tax again on this same salary in FY2023-24. The query seeks legal methods to prevent this double taxation, with suggestions including checking Form 16 and potentially using Form 89(1) for relief if the employer remains uncooperative, though filing Form 71 might be an option with potential loss of TDS credit.

Nikhil Kaushik

Fellow CA

86881 Points Posted on 15 April 2024

but should not your client file the ITR based on Form 16 as issued by the employer? see if you can use 89(1) for relief in case the employer does not budge.