For the current FY salary is not received for 3 months from Jan-Mar 2017, it will be paid in next FY. As per rule, tax needs to be paid in accrual basis so should one add the unpaid salary to current year income and pay taxes accordingly or better to add this income in next year whn it will be actually received as TDS will also be deducted and then in next years ITR, claim section 89 relief? Please advice.
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Tax on accrues salary
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| Originally posted by : Udgam Koomar | ||
 |
For the current FY salary is not received for 3 months from Jan-Mar 2017, it will be paid in next FY. As per rule, tax needs to be paid in accrual basis so should one add the unpaid salary to current year income and pay taxes accordingly or better to add this income in next year whn it will be actually received as TDS will also be deducted and then in next years ITR, claim section 89 relief? Please advice. |  |
It should be offered to tax as per TDS deduction. Follow 26AS.
Salary is taxed receipt basis, not on accrual basis. So declare as income only when you receive it
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