SALARY ADVANCE WHETHER TAXABLE

Dear sir's, it is still not clear ???????????? i have taken an advance from my office which is given on transfer from one place to other, this is refundable advance without interest, now i am being told that it is taxable. If so the i will have to give out 30% tax as i am in that bracket. please help with citations etc

I appreciate spirit of sec 17 of Income Tax Act 1961,as produced by CA.Saibaburao Nanduri,If it is Your INCOME,Because there should be tax on INCOME only as per Act,When Proportionate of Your advances adjusted against your Income that time only you R liable for Tax,You can contest your case on that ground.

You will find lot of irrevants acts,rules,circulars,notifications and cases Laws Which contradicts each other,As Payees You have Right to make planning in your favour.Within the broader concepts of Acts.

as per sec.15, which is about chargeability there are 2 types of advances, ie advance salary & advance against salary former is taxable where as later is not taxable. to conclude your advance is against salary hence not taxable u can show them chargeability conditions of sec.15

If an 'Audit Manager' advises that payee can take a decision in his favour, where the act and rule is so clear about the taxability,i really dont know how to rely on his audit......

Hi mona, please clear the differences between advance salary & advance against salary

Dear Anusha,
Established your creditibility on this Open forum by securing at least 5% of score of what I got then your comment may be well accepted by readers,You logically established your claim on the subjects matters but don't show your uglyness of Mind(I don't Comment about your body) by going to the irrelevant topic of audit,If you R right then I will accept on the same platform and appreciate you,It's Individual rights to the every citizen to do their tax planning which is subjects of Hardcore Professional, and such persons never comment personally or irrelevant.
All the Best.

Dear vikram singh ! Incometax Act says 'advance salary' is taxable. Then what is escape route ? Simple. Let your employer say it as a 'loan' instead of 'advance salary'. Problem will be solved. At one point of time 'distilled water' bottles used for the purpose of injection was not taxable and government wished to tax it and G.O was passed accordingly. Then what is the escape route for the traders ?? From next day onwards they have changed the lables as 'water for injection' instead of 'distilled water'...!

SALARY ADVANCE IS TAXABLE AS PER SECTION 17 OF IAX ACT

As you took a sum of money from your employer that is refundable doesnot amount salary because of sec.17(1) of IT Act 1961 you donot vest right to keep but have to return according to rules partakes only loan form employer and not advance salary

THE QUESTION AGAIN MY DERA SIR'S IS DIFFERANCE BETWEEN ADVANCE ON SALARY AND SALARY ADVANCE PLEASE ANY CITATIONS, RULINGS ETC

not taxable. but if exceed rs. 20000 as noramal advance given to each employee. it will be perquisite in the hand of employee as loan or advance given at concessional rate

I am 100 % convinced that the advance you have taken from your company is not taxable. Eg of Advance Salary - In March 07 you receive salary for 3 months and then for the next 2 months, you would not get any salary. Eg. of advance against salary - In March 07, you get an advance of Rs. 40,000 which would be deducted @ Rs. 2000 p.m. (like an interest free loan)
Unfortunately, i could not get hold of any case laws. The value of benefits resulting from the interest free loan would however be included in your income [as per rule 3(7)(i)]

If any advance salary is recovered during the year is not taxable and only unrecovered portion is considered as taxable income for current year.