Salary breakdown is Basic, DA, PF & Other allowances. But the employer has implemented x% cut on gross salary. Now the pay slip has other deductions where the x% is deducted.
Would this have any effect on My Income Tax?
Does the accounting followed can be sued as the x% can be reflected in any of the allowances instead it has been taken to other deductions?
Hi Baron,
Regarding the effect on your Income tax, the following are possible,
1. If the gross amount has been shown as other deduction, then that amount will be a loss to you and it will have a impact on the Income tax, wherein your income tax wil be high.
2. On the other hand if the Gross salary has been reduced by the X% amount and is not shown as other deduction, then the amount of Basic, DA and other allowances get reduced and your Income tax too will be reduced.
Shyam S Gupta and Company
New Delhi
CA Inter
View Details
HKC | Chartered Accountants & Business Advisors
Ludhiana
CA
View Details
Abic and Mani Chartered Accountants
Kottayam
B.Com
View Details
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
CCI
Pro
CAclubindia
