Is advance salary taxable??
Rajdeep Kumar Gupta (Article) (79 Points)
08 January 2014
is advance salary taxable?
10 Replies
Revanth Kumar
(Assistant Manager Finance)
(224 Points)
Replied 08 January 2014
Dear Rajdeep Kumar Gupta,
As per Sec.15 Salary is taxable on accrual or receipt which ever is earlier basis.
Hence salary received in advance also taxable in the year of receipt.
Rajdeep Kumar Gupta
(Article)
(79 Points)
Replied 08 January 2014
Is not it will be treated as a loan as received earlier without any right to receive generated?
Sachin Rajput
(account exe)
(593 Points)
Replied 08 January 2014
yes advance salary is taxable but advance against salary not taxable.
mahesh
(student)
(57 Points)
Replied 08 January 2014
salary is taxable on receipt basis or accrued. basis whichevr is earlier
vipin
(student)
(36 Points)
Replied 09 January 2014
Yes fully taxable advance salary
while advance against salary not taxable since its a loan from employer' its not his income.That's why not taxable. Remember advance. Salary is always taxable .
Jagdeep Singh
(Article)
(22 Points)
Replied 09 January 2014
Yes,advance salary is taxable but advance against salary is not taxable
arun sharma
(assistant accountant)
(27 Points)
Replied 09 January 2014
advance salary is taxable with in year when he recd the salary
and next it can be adjusted in the taxable salary
Shruthi
(Article Assistent)
(336 Points)
Replied 09 January 2014
| Originally posted by : Rajdeep Kumar Gupta | ||
 |
Is not it will be treated as a loan as received earlier without any right to receive generated? |  |
Dear Rajdeep,
First decide whether the advance is salary advance or advance against salary.
Salary advance is taxable, since salary is taxable on accrual or receipt, which ever is earlier.While advance against salary is exempt.
Vikas Jain
(Student)
(80 Points)
Replied 10 January 2014
Advance Salary is taxable because ' Salary is taxable on Due or Receipt Basis whichever is earlier'
Advance against Salary is a Loan and monthly adjustment by employer against salary does not relieve employee from tax bracket.
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