Payment of March,09

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Background : I am working with a Private firm on six months agreement at a monthly rate. As per agreement I have to put the bill for a month’s work upto 5th of next month and then the company is to pay upto 15th of the month. I started on 9.2.09. The company paid me in March’09 for my work of February’09.
Case :
1. As per my assessed income for the financial year 08-09, which included payment of February’09 paid in March’09, I deposited my tax in the month of March’09.
2. For my work of March’09 the company paid me in June’09 . The company has issued a Form 16 to me which shows payment of March’09 also in March’09 itself.
3. If I include this payment of March’09 (shown paid in March’09 by the firm in Form 16), some addirional income tax may work out.
4. Now do I have the option of showing the payment of March’09 in the financial year 09-10?
a. If yes then will I have to submit photocopy of present Form 16 or some other procedure is to be followed for next year’s Return?
b. if not, then will I have to pay any interest/penalty on the additional income tax to be deposited as per revised calculation.
c. Is there any other way to do it without incurring much loss?
Replies (4)

 U HAVE TO SHOW THE INCOME OF MARCH THIS YEAR ONLY.U HAVE TO NOW RE-ASSESS UR INCOME AND TAX ACCORDINGLY AND PAY THE SHORTFALL TILL 31ST JULY ALONG WITH INTEREST U/S 234A (IF UR TOTAL TAX COMES MORE THAN Rs. 5000), @ 1% P.M. FROM APRIL TO SEPTEMBER , i.e., 6% OF THE SHORTFAAL AMOUNT.THEN U HAVE TO FILE A REVISED RETURN WITH REVISED INCOME AND TAX . THE LAST DATE FOR REVISED RETURN FOR F.Y. 2008-2009 IS 31ST MARCH 2011.SO DONT WORRY ABOUT PENALTY.

IF STILL IN DOUBT PLZ DO TELL ME

IF NEED CONTACT NUMBER DO TELL ME.

REGARDS,

CA RITESH KOTHARI

Dear Ritesh,

Thanks a lot dear for guidance. I have yet to file my return, which I will do by 31.7.09. I am depositing the additional tax amount too which is less than 5000. If I am not bothering much, would u also clarify on the following :

a. Is the payment for March not considered to be due in April and counted in next year's income?

Dear Ritesh,

Thanks a lot dear for guidance. I have yet to file my return, which I will do by 31.7.09. I am depositing the additional tax amount too which is less than 5000. If I am not bothering much, would u also clarify on the following :

a. Is the payment for March not considered to be due in April and counted in next year's income? Specially so, if the amount due is paid in the next financial year?

Regards,

PC Govil

no the payment will be considered for march only.coz income is taxable on accrual or received whichever is earlier basis.and tthe payment of march is although received in april but accrued in march and pertains to the work done by you in march.

hope u r clear.

regards,

Ritesh Kothari


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