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Performance pay received twice in assessment year

Tax queries 967 views 3 replies

Performance pay (PP) received twice in current assessment year

 

PP for 2007 – Received in Apr 2008

PP for 2008 – Received in Mar 2009

>> PP for 2007 & 2008 both falling in AY 2008-09

 

Until last year our company had practice of paying performance pay in Apr however from this they have started paying in Mar due to which I have received PP twice in current AY and finally resulted in high TDS.

 

Is there anyway I can claim reimbursement for tax paid on “PP for 2008” for current AY? Or any other solution?

 

Thanks!

Replies (3)

No, you earn income so you have to pay tax in current year only though you can save by claiming chapter VI-A deductions

Yeah apprisal falls under the head salary and it says due or receipt whichever is earlier has to be taxed

the salary income is taxable based on receipt of due basis which ever is earlier.

in such a situation you will pay less tax in future.


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