As Salary is taxable on due or reciept whichever is earlier .whether TDS deducted on Advance Salary shall be permissible in the same year. remember income will become due next year or if not then how would employee get credit of TDS next year
kumarsatish022 (Professional) (165 Points)
07 January 2010As Salary is taxable on due or reciept whichever is earlier .whether TDS deducted on Advance Salary shall be permissible in the same year. remember income will become due next year or if not then how would employee get credit of TDS next year
Amir
(Learner)
(4016 Points)
Replied 07 January 2010
Dear Kumar,
In case of Advance Salary TDS will be allowed only in the year of receipt of salary, but relief u/s 89(1) can be claimed..
In fact we ware discussing the same thing in another thread follow this thread
"advance salary from a.y. 2010-10"
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 07 January 2010
It is permissible as per Rule 37 of Income Tax Rules, 1962.
Amir
(Learner)
(4016 Points)
Replied 07 January 2010
Dear Nitin,
Can u plz explain what do u mean by "It is permissible"
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 07 January 2010
I mean the claim of TDS is permissible(allowed).
Amir
(Learner)
(4016 Points)
Replied 07 January 2010
DEAR NITIN,
Do you mean to say that TDS deducted in A/Y 2008-09 UNDERHEAD SALARY CAN BE CLAIMED IN A/Y 2009-10 just because there was advance salary in A/Y 2008-09..
I M ASKING THIS AGAIN BECAUSE I COULDN'T FIND IT ANYWHERE..
CAclubindia
