Postponing a cheque

926 views 5 replies

Hi,

I have a query on calculating my income.  

I received a payment from my previous company under the head Gratuity for that I may be liable to pay tax. Can I postpone the encashing of cheque to next finacial year with the hope that I will have less income next year. Is it legal? 

thanks

Replies (5)
no..... actually the payment is in ur hands so according to merchantile badis of accounting it is ur income now... further, ur previous employer will be showing the amount as expense in revert thereby its ur income.... so show it in this assessment year.

U cannot postpone tax liability by postponing encashing of cheque. As per income tax act u need to pay tax on salary on due r receipt whichever is earlier.

Convincing Reply by Ms.Varalakshmi

Hi

Income earned in one assesment year cannot be postponed to another assesment year.

Check the section 10,(subsection 10) u have exemption, limit available upto Rs 10 lakhs

 

As per the below notification.

DSM/BY/GN-194/10 Notification No. 43/2010 [F.No.20ear0/33/2009-ITA.I], dated 11-6-2010

As per Sec 10 of IT Act you must get exemption of whole amount,since all the employers' now a days are paying within the limit of exemption.

kkm


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