11 March 2021
Generally, such transactions are accounted in the year to which it would pertain. In your case, if the employer chooses to account it as an expense for 20-21, form 16 for 20-21 would include such transaction as well. On the contrary, since liability to deduct tax at source on salary arises only when payment is made (in this case April 21), the employer has an option to show this transaction in form 16 for the subsequent year.
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