Saheblal Kamalanavar (25 Points)
25 March 2019
CS Vasudev Sharma
(Service)
(405 Points)
Replied 25 March 2019
Accountant will deduct the tax otherwise employees have to pay tax.. as per provisions of the Income Tax Act, income is taxable in the financial year when it is received.
Harish varun
(224 Points)
Replied 29 August 2024
Regarding the extra salary credited in March due to the Sixth Pay Commission adjustments, it is important to consider the total taxable income for the financial year, including any additional income such as the one received in March. The TDS (Tax Deducted at Source) should be deducted based on the total income for the entire financial year.
Since TDS was already deducted and deposited in February, the accountant needs to assess whether the additional salary credited in March has pushed the total income into a higher tax bracket. If it has, additional TDS may need to be deducted to ensure that the correct amount of tax is withheld for the financial year.
To gain a better understanding of the impact of pay commission revisions on salaries and taxation, you can refer to our detailed guides on the 7th Pay Commission here:
These resources provide valuable insights that might help you and your accountant make an informed decision.
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