05 July 2018
I have received my performance based payment pertaining to the year 2016-17 in the month of April, 2018 from my company. While checking the Form 26AS for the financial year 2017-18 (AY-2018-19) (as about to go for filing ITR), this payment was found accounted along with other details of the payment the financial year 2017-18. I have sent letter asking clalrifications from my company for this wrong accounting. But, so far no reply. However, I have been following it up.
Grateful, if you could give your kind advice whether the referred performance based payment is to be taken as income for the financial year 2017-18 or 2018-19 while filing my ITR.
05 July 2018
Performance based pay is 'salary' and it should be accounted by employer/ employee on payment/ receipt basis since TDS is based on payment. Hence, 26AS of fin. yr. 2017-18 needs correction.
05 July 2018
Thanks,Sir for your kind and quick clarifications. In fact, I have written to my Company to correct the Form26AS of Financial year 2017-18 for the wrong accounting of this payment. I would follow it up again.
CAclubindia
