Salary Advance

Hi All,

Would like to know if salary advance will be treated as a perquisite if its not recovered from the employees within one month. What does Income tax act says about it. Request all to kindly clarify on the above matter.

 

Thanks & regards,

Vishakha 

Replies (2)
Quick Summary
This discussion explores whether an unrecovered salary advance, not repaid by an employee within one month, is considered a taxable perquisite under the Income Tax Act. The initial response suggests it remains a salary advance until offset against future salary payments. However, the core question remains about the tax treatment if the employee fails to repay the advance within the stipulated month.

It remains as Salary Advance untill it is adjusted against future salary payment.

Thanks for the reply, but if the employee is unable to repay the amount back to the employer within one month, will it be treated as perquisite or it wont be treated as perquisite.

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