Advance Salary available in Balance sheet
This query is : Resolved
26 December 2021
Dear Sir,
From a Pvt Ltd company I have made a Salary payment of around Rs. 6 lac in parts to a single employee after deducting T.D.S in F.Y. 2018-19 from which Rs. 4 lacs was shown as a Salary expense and Rs. 2 lacs was shown as Advance Salary given in that year in the company's Books of accounts.
Can I book this Advance Salary as company's salary expense in F.Y. 2020-21 to reduce Profit.
The counter party has already shown this entire salary amount of Rs. 6 lac as income received in his books of accounts in F.Y. 2018-19 while filing his Income tax return.
Please advise me on this matter.
Regards,
Divyesh Jain
From a Pvt Ltd company I have made a Salary payment of around Rs. 6 lac in parts to a single employee after deducting T.D.S in F.Y. 2018-19 from which Rs. 4 lacs was shown as a Salary expense and Rs. 2 lacs was shown as Advance Salary given in that year in the company's Books of accounts.
Can I book this Advance Salary as company's salary expense in F.Y. 2020-21 to reduce Profit.
The counter party has already shown this entire salary amount of Rs. 6 lac as income received in his books of accounts in F.Y. 2018-19 while filing his Income tax return.
Please advise me on this matter.
Regards,
Divyesh Jain
26 December 2021
Yes, you can expenses such advance payment no problem.
26 December 2021
Ok, Thanks a lot for your reply
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