Receipt from employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2014 What is the accounting treatment for money received from employees, which head to be credited? Say due to bond salary is refunded or certain amt of allowance is paid back? And what is the tax treatment for above?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 November 2014 The amount can be credited to the respective head under which it was paid/payable to the employee. The expenditure amount under the head gets reduced and results in excess tax liability to the employer.
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