Year of charge
This query is : Resolved
04 June 2020
Dear Sir,
Mr X superannuated from services from M/s ABC Ltd. dt on 31.03.2020 and he was paid all his terminal benefit except earned leave(EL)amount.
EL amount of Rs 6.5 lakhs was actually paid to him in May 2020.
whether Rs 6.5 lakhs is taxable in financial year 2019-20 or FY 2020-21
Mr X superannuated from services from M/s ABC Ltd. dt on 31.03.2020 and he was paid all his terminal benefit except earned leave(EL)amount.
EL amount of Rs 6.5 lakhs was actually paid to him in May 2020.
whether Rs 6.5 lakhs is taxable in financial year 2019-20 or FY 2020-21
04 June 2020
1. EL to be offered for taxation in the year of accrual or receipt which ever is earlier.
2. If that is followed, sorting out of TDS will become a problem.
3. So, I feel, better to offer in the year of receipt so as to match with TDS.
2. If that is followed, sorting out of TDS will become a problem.
3. So, I feel, better to offer in the year of receipt so as to match with TDS.
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