Hello,
My doubt is if a company gives salary advance to employee on say 10% interest and company is receiving interest earned then whether any TDS is involved in this situation?
surya
Menu
salary advance given to 'ee by company
Replies (4)
NO
advace salary is different form advance against salary.
Advance salary is treated as salary as it is taxable on receipt or due basis whichever is earlier.
Advace against salary is not treated as salary, it is treated as loan.
No TDS applies for that advace against salary.
The obligation to deduct tax u/s.192 arises only when there is an obligation on the part of the recipient to pay tax under the head Salary.(As per CIT vs COROMANDEL FERTILISERS LTD. (1984)187 ITR 673 (AP) case)
Advance salary is taxable, but loan or advance against salary is not taxable. Hence, TDS need not be deducted
agree with mukund bhaiya
Very Nice Clarification with good Explanation
Agree with Muguntha sir & Vinay.
Recent Topics :
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
- 70:30 GST rule for solar EPC: partial scope (struc
- TDS on Redevelopers hardship allowance received no
- Who will take FSSAI AND TRADE LICENSE: owner or te
- E Way Bill in respect of Without Bringing Material
- FAST DS 2026 query
- Consultation
- E-way notices for FY 22-23
- Gst file not created
- Regarding 3CEB query
Related Topics :
CAclubindia
