06 May 2008
As person has taken applied for leave encashment in the month of March-08, but has got sanctioned in the month of April-08 and payment was also disbursed in the April-08.
Now my question is that -
Whether it should be booked as liability in the month of March-08 by booking as expense for march-08, or it should be booked in the month of April-08 as expense.
If it booked it in the month of march-08, whether company is liable to deduct tax in the month of march-08 itself.
and finally, when it will be taxable in the hand of employee, in the previous year 2007-08, or in the previous year 2008-09
CAclubindia
