Hello all,
We have a concept called 'Advance against Salary' in Income tax, where the employer advances loan to the Employee and later on adjusts the amount of loan with the salary.
Now my question is, what is the amount to be shown under the head 'Salaries'? Is it the the gross amount of salary received or the net amount after adjusting the loan amount?
Salaries will be shown in the P&L at gross amount only. However while showing the o/s salary payable to the employee it will be shown net of all deductions such as PF< PT, loan, advances etc...in the B/S.
Gross amt. of salary should be shown as expenses for that year which they related
note: salary may bifurcated into HRA, children allowance, & other allowances etc.
| Originally posted by : Kumar Mukesh(Work in Progress) | ||
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Gross amt. of salary should be shown as expenses for that year which they related note: salary may bifurcated into HRA, children allowance, & other allowances etc. |
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