treatment of salary due & taxed but not received later on!!

2888 views 6 replies

hello friends...

if an assessee has filed his return based on income from salary on due basis & salary of march have become due(and hence considered in IT return ) but not received later on as the employer becomes insolvent....how will it be treated /??

Replies (6)

Salary is due. So it has to be taxed whether recieved or not recieved in future. Salary not recieved by employee from his employer because of insolvency will not affect tax treatment.

hi neha,

    salary becomes taxable on due or receipt basis whichever is earlier. during march, employer-employee relationship existed. hence it is taxable

I shall be grateful if anybody clarify how an employee will pay tax if his employer do not draw the employee's salary for months together say for 3 or more month due to any reason say due to some spell of unauthprised leave etc. Is the said employee is liable to pay tax based on calculation of 12 months salaries although he is not in receipt of 3 or 4 months salaries? Where from he will pay such additional Income Tax for salary not drawn by his employer? --S.KARMAKAR, KOLKATA

Mr. Karmakar,

Your query is not very clear. Kindly elaborate

Factually, Tax is required to be paid on the amount of salary shown in Form 16 issued by the employer, whether it is actually received or not.

So in your case if the employee has taken leave without pay for a period of 3 months it will surely not be depicted in Form 16 and therefore the same will not be considered for taxability.

Originally posted by : S. KARMAKAR
I shall be grateful if anybody clarify how an employee will pay tax if his employer do not draw the employee's salary for months together say for 3 or more month due to any reason say due to some spell of unauthprised leave etc. Is the said employee is liable to pay tax based on calculation of 12 months salaries although he is not in receipt of 3 or 4 months salaries? Where from he will pay such additional Income Tax for salary not drawn by his employer? --S.KARMAKAR, KOLKATA

 If salary has become due, only then it will be taxable. Salary received or not received will not make any difference in tax computation. Whatever salary has become due is to be disclosed by employer in  Form - 16.

Now, my que is if employee leave the job at the end of the month. Means he work for a month. And if he continue his job he will receive his salary . Now, when he leave his job, his employer forfeit hs salary. What an employee will do when he is filling his returm. His income is below taxable limit. he has not received form 16.

Whether include salary of particular month in his assessable or not.

Pls reply

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
23 July 2026
Senior Accountant

Felicity Adobe LLP

Bengaluru

CA Inter

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details