Income from salary

shashikant (Employed ) (170 Points)

27 September 2014

Hi,

Please can any one tell me about the ADVANCE SALARY Paid to Our Employee which will be taxable income in the hands of employee under salaried income.

Please reply soon its urgent..............

Shashikant

Bangalore

900847820

IPCC Student

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5 Replies

deepak kumar srivastava (na) (281 Points)
Replied 27 September 2014

1 .Advance salary is taxable when it is received by the employee irrespective of the fact whether

it is due or not

2. WHEREAS Advance against salary is different from advance salary. It is an advance taken by

the employee from his employer. This advance is generally adjusted with his salary over a

specified time period. It cannot be taxed as salary on reciept basis

Mihir (Wealth Manager) (5293 Points)
Replied 27 September 2014

Advance against salary that is to be adjusted later is not taxable.

deepak kumar srivastava (na) (281 Points)
Replied 27 September 2014

say mr x has taken advance against salary in 2013-2014 of 20000. it is not taxable as income of 2013--2014.

it is the advance salary which is taxable in year of reciept

balkishan sharma (Student CA Final ) (99 Points)
Replied 28 September 2014

Depend on it ,due or paid , taxable if paid

prayag gupta (student) (23 Points)
Replied 28 September 2014

Under salaries income is taxable on "due" or "receipt" whichever is earlier basis. Therefore, advance salary is taxable in the year of receipt.

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