21 December 2007
Due to termination of services after completing three years of working, the provident fund amount after deduction of tax is paid to the employee. what will be the treatment of the amount so received? can it be carried over directly to capital or will it be credited in p/l and be liable to tax at the normal rates? please advise
21 December 2007
There is no clarity in the question. In this case, the receipient is employee. There is no question of maintaining P & L Account and Balance Sheet in case of assessess receiving salary income.
When it comes to employer, he doesn't receive any amount. So how does the question of crediting Capital or P & L arise
If you could express clearly, we shall be able to use this Forum effectively to fulfill the objective of "Let us grow stronger by mutual exchange of knowledge"
CAclubindia
