Salary arrears
This query is : Resolved
25 March 2016
One of my client is Aided Educational Trust. Schools under this trust receives salary for its employee from government in the form of Salary Grant. 100% Salary is received in the form of Grant. About 25 years ago trust ceased the employment of one employee. Hence the amount of grant also reduced to the extent equal to the salary of the employee. That employee registered a case against trust. Today, after 25 years the result of case held against trust. Court ordered trust to pay the salary from its own pocket. Government will not pay through grant. Trust has agreed to pay the amount.
My question is whether it is to be shown as salary in current year? (Accounts of trust is on receipts basis) if salary is not to be shown which expense should be booked?
If salary is to be considered then relief u/s89 can be taken?
My question is whether it is to be shown as salary in current year? (Accounts of trust is on receipts basis) if salary is not to be shown which expense should be booked?
If salary is to be considered then relief u/s89 can be taken?
25 March 2016
In My view, If Employees Received Salary of Previous years in Current Year then It should be shown in Current Financial year but relief u/s 89(1) says accrued and receipt difference. So Employees can claim relief after calculate difference.
25 March 2016
Thanks Murtaza, but the salary was not acrrued in previous year. Trust is paying to that employee on order of court.
25 March 2016
yes agree, but on view point of employees why they can't claim relief only because they have not received their salary in previous years. Relief need to sort as if they received that salary in previous years how much tax they had paid on that particulars assessment years and calculate relief in current year. I think dept. will also consider relief if its based on relief calculation.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
