My client's three months salary is outstanding and it will be paid to him in the next financial year.
I know salary should be shown in the return on due basis but then he has to pay tax on these 3 months salary which he didnot receive and next year his employer will again deduct tds on it? So please suggest what should be done.
Thanks
Employer must credit his salary and deduct the TDS in this FY only... Though he may pay the net salary in next year...
In case of deduction in next year employee would not be able to even cliam the refund.. credit of TDS would not be allowable w/o surrendering corresponding income... AO will disallow the credit of TDS if case goes into scruitny..
O P Bagla & Co LLP
New Delhi
CA Inter
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