Tax free salary

Tax free salary : The tax paid by the employer on behalf of the employee is included in the salary of the employee.

In what case such tax is paid by the employer?

Should the employee pay tax on such amount too?

If the case is "surrender of salary" then why would the employee pay tax for the portion related to his salary which he surrendered?

... Please help me in this case

Replies (2)

even if the employee had surrendered the salary, such salary will be taxed because salary is taxable on accrual or receipt basis whichever is earlier

sorry but... in case of surrender of salary the salary doesnot accrue at all. Receiving is out of the question.. so why pay tax for that?

the thing you're talking about is "forgoing of salary" .. here the salary is accrued but the employee does not recieve it .

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