work is worship (Service) (2728 Points)
15 November 2012Is any advance received against salary from future employer taxable especially when the offer letter not yet accepted.
Can the employee - employer relationship established here.
WHat if he has still not resigned from previous employmnet or serviing notice period and he has acc epted the offer letter from the future employer
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 17 November 2012
No Advance is not taxable in any category.This is adjustable in nature.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 17 November 2012
DEPENDING UPON THE FACT IF THIS ADVANCE IS NOT REFUNDABLE THAN IT WILL BE TAXED UNDER INCOME FROM OTHER SOURCES
IF IT IS REFUNDABLE THAN TAXED AS SALARY INCOME WHEN EMPLOYEE AND EMPLOYER RELATION SHIP ESTABLISH
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