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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2010 If employees resigns in Feb'10 and F&F is done in August.In this case salary of feb is paid in August.In which F.Y should salary of Feb is taxable? Also employer will issue form 16 in which F.Y.

Should we deduct PT on the F&F?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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28 September 2010 If you have created the provision for F & F in FY 2009-10, the account it in 09-10 only else,

account for the same on payment basis (fy 2010-11)

Form 16 will also be on the same ground.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2010 Should we deduct profession tax.Also should we deduct TDS for Feb salary paid in Aug cause in 2010-11 his income will not exceed tax slab as being paid just one month salary?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 September 2010 my view , Salary is taxable on Accrual or payment which ever is earlier,so it need to be considered as last year income only, provision need to be created on last year itself.

PT based on state, so please refer the same