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Salary advance taxable

Sandeep Himatsingka (SCM-Head) (85 Points)

16 February 2013

Co gave me 30,000 as advance in this FY & deuction will happen @ 3,000 pm for Jan Feb & Mar 2013. What will be added in Taxable amount. Please elaborate

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8 Replies

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 16 February 2013

Firstly, salary is taxable on receipt or accrual, whichever is earlier..

in your case, the implication will not be shifting to the next FY as the amount received as salary as for the last quarter of the current FY only!!

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Sandeep Himatsingka (SCM-Head) (85 Points)
Replied 16 February 2013

Originally posted by : CA Ankit Totla
	Firstly, salary is taxable on receipt or accrual, whichever is earlier.. in your case, the implication will not be shifting to the next FY as the amount received as salary as for the last quarter of the current FY only!!

Exactly on how much amount I will have to pay the tax?

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 16 February 2013

entire advance salary is taxable in the PY of receipt.. so in your case, since you have taken an advance salary of Rs. 30,000/- during the year, it is entirely your taxable income and will be taxed according to your tax slabs..!!

Sandeep Himatsingka (SCM-Head) (85 Points)
Replied 16 February 2013

Originally posted by : CA Ankit Totla
	entire advance salary is taxable in the PY of receipt.. so in your case, since you have taken an advance salary of Rs. 30,000/- during the year, it is entirely your taxable income and will be taxed according to your tax slabs..!!

Instead of 'advance' if i say company gave me 'loan' then?

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 February 2013

Salary is taxable on reciept or accrual basis whichever is earlier.

Whatever you hav recieved in Jan & Feb 2013 will be taxable for AY13-14 as income from salary.

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CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 16 February 2013

loan is not an income.. it is not taxable.. provided the company provides loan to its employees as a regular practice..

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 February 2013

Loan is a capital reciept and does not form part of your monthly salary so its not taxable as income from salary but as above rightly said that its should be a regular practice of your company to give loan.