Hi,
I have a query on calculating my income.
I received a payment from my previous company under the head Gratuity for that I may be liable to pay tax. Can I postpone the encashing of cheque to next finacial year with the hope that I will have less income next year. Is it legal?
thanks
U cannot postpone tax liability by postponing encashing of cheque. As per income tax act u need to pay tax on salary on due r receipt whichever is earlier.
Convincing Reply by Ms.Varalakshmi
Hi
Income earned in one assesment year cannot be postponed to another assesment year.
Check the section 10,(subsection 10) u have exemption, limit available upto Rs 10 lakhs
As per the below notification.
DSM/BY/GN-194/10 Notification No. 43/2010 [F.No.20ear0/33/2009-ITA.I], dated 11-6-2010
As per Sec 10 of IT Act you must get exemption of whole amount,since all the employers' now a days are paying within the limit of exemption.
kkm
CAclubindia
