what is the treatment of advance salary
16 Replies
@ CA. $ahar$h @
(Student)
(338 Points)
Replied 27 December 2009
Dear Geetanjali,
As per section 15 i.e charging section of salary,. if salary is due then it become taxable whether received or not. Also, salary is taxable on receipt whether due or not.
So it will be taxable in the previous year when the advance salary is received.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 27 December 2009
Advance Salary is taxable....... but advance against salary is exempt........
bhavin
(article cleark)
(40 Points)
Replied 27 December 2009
i agree with dipesh...because the treatment is right u/s 15 of the income tax Act..
P-A-W-A-N
(TAX - MANAGER AT GURGAON)
(541 Points)
Replied 28 December 2009
| Originally posted by : LOVE ARORA | ||
 |
Advance Salary is taxable....... but advance against salary is exempt........ |  |
love is correctly said
dinesh
(audit)
(60 Points)
Replied 28 December 2009
Hai all,
Salary is taxable on due or Receipt basis whichever falls earlier.......So advance salary is taxable when it is received i.e...even it is not due.Advance against salary is not taxable when it is received but taxable as and when it falls due.....it is not exempted
Looking for further clarification.
Shriti Daga
(Chartered Accountant)
(102 Points)
Replied 28 December 2009
hey i also with above all salaryis taxable on due or receipt basis whichever is earlier.
manish
(Article Assitant)
(358 Points)
Replied 28 December 2009
I am also agree with depesh, Advance Salary is taxable for employee on the basis of receipt however he can claim relief u/s 89. Loan from employer is not taxable as advance salary.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 28 December 2009
| Originally posted by : LOVE ARORA | ||
|
Advance Salary is taxable....... but advance against salary is exempt........ | |
Correct statement by Mr Love Arora
R!tu Ber!
(Chartered Accountant)
(405 Points)
Replied 28 December 2009
all have given correct answers
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
