15 December 2016
I am govt servant and recently as per rule on transfer of place of posting,I have taken advance equal to the 2months basic pay which will be deducted from my sallary every month in 36 installment. Here I want clarification that whether in this year this advance taken amount will be considered in my annual income and income tax will be levied or not?
15 December 2016
If it is taken as advance then it will not b taxed as it is not ur income, and tax is imposed on income. As this is advance from ur employer, hence I'll suggest u to make a contract showing the loan amount and the repayment schedule so that u can show it to department in case department ask clarification regarding that money.
15 December 2016
Advance salary not considered as income same will be adjusted in future salary so Taxable arise as and when you receive income as salary.
CAclubindia
