As per Clause (a) of Section 15 of the Income Tax Act of 1961, any salary due from an employer to an employee in the preceding tax year, whether paid or not, is taxable under the head "Salaries."
This means that accrued salary, regardless of payment status, is considered taxable income as long as it's due to the employee.
Income from salary is chargeable to tax on a “due basis” or “receipt basis,” whichever is earlier.
Comments
0 comments
Please sign in to leave a comment.