My employer paid me Salary for a part of the financial year but my services were rendered for the full year. Do I need to pay tax on the entire amount of Salary due to me from the employer?
Any Salary due from an employer or
a former employer to an employee in the previous year whether paid or not,
is chargeable to income-tax under the head ‘Salaries’ (As per Clause(a) of section 15).
In other words, the Salary accrued or which becomes due need not be actually
paid in order to make it chargeable income. What is relevant is that the Salary
is due to an employee from an employer. Income from ‘Salary’ is chargeable to
tax on “due basis” or “receipt basis” whichever is earlier.
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