Advance against salary

Mihir (Wealth Manager) (5293 Points)

15 April 2011  

If an employee is paid advance against salary for the FY 2010-2011, will that advance be treated as part of his salary and taxed in the AY2011-12 ?

Advances paid is a running account - means there is a continuous debit and credit in the account. Advance paid will be adjusted with the salary payable in the subsequent months.

Thanks