Namaskar! Welcome to our new lecture. I am your friend
Shreya Gupta.
Friends, if you remember in the last lecture, we were
discussing about salary head.
What all things are included in salary head? What all
things were taxable? What all things were exempt?
Our discussion on that was pending.
But if you remember in the last lecture, we had an
interesting discussion.
And the discussion was that salary, whatever the employer
gives to his employee apart from salary, that is part of
his salary only.
Like we had told that the employer gave his employee house,
car, aeroplane, aircraft, pilot, air hostess.
All that used to become cost to the company, C2C.
All those things used to be included in his package.
I had also told you that enhanced salary is different.
And the cost to the company is different.
What is taxable in income tax? We take the cost to the
company.
We take the higher one.
We were discussing about this yesterday.
I had given you the example of Jethalal.
He gives 10 lakhs package to Baga.
And he used to pay 1 lakhs tax on his own.
So what was the outflow of Jethalal? 11 lakhs.
So what will be the salary of Baga in that case?
According to income tax, 11 lakhs.
His 11 lakhs package will be done.
Package. Complete package.
What he is receiving is different.
And the tax that his employer gives to him is different.
It has become a complete package.
We say, what is your package?
In that case, his 11 lakhs package was done for Baga.
Then we had discussed about salary.
When is it taxable? Due basis or receipt basis?
Whichever is earlier.
There were many problems in this case.
The problem was that a person's entire salary was due.
It was not received. It was due.
The employer did not pay the salary.
But the income tax officer came to his house and said,
Your salary is due.
So you will have to pay tax on it.
Due basis or receipt basis, whichever is earlier.
But he got an advantage.
If you have already paid tax on due basis, then when the
salary is actually received, you don't have to pay tax on
it.
Friends, these are some of the concepts that we covered in
the last lecture.
Let's start a new lecture today.
In this, we will discuss more interesting topics.
And the level of discussion will gradually increase.
Friends, you will enjoy it.
Keep supporting me, my dear friends.
This support is what we need from you.
Friends, there is a concept, Advanced Salary.
Advanced Salary.
What does Advanced Salary mean?
For example, your month is going on.
You are working somewhere.
Only 15 days have passed.
And you have a salary of Rs. 1 lakh.
Now, if there is a need in your house, that you need Rs.
1 lakh right now.
You need it on the 16th day.
When do you get the salary generally?
Once the month is over, you get it on the next 2, 4, 5 days
of the month.
Suppose you get a job on 1st January.
Today is 15th January.
And you need money today.
What will you do?
You will go to your employer.
You will say,
Sir, please give me some advance.
Employer will give you the salary of that month, which you
should have got next month.
He will give you the advance of Rs. 1 lakh.
He will give you the salary of that month only.
Now, tell me, when will it be taxable?
Due or receipt?
Whichever is earlier.
Was the salary due on 15th January?
It was not due.
When he will work till 31st January, his salary will be due.
So, it was not due yet.
Was it received?
Yes, it was received.
You took the advance.
It was received.
So, what will happen in that case?
When it is received, you will have to pay tax on it.
On advance salary, when you are on receipt basis, because
receipt basis is also due, it is not due yet.
So, on receipt basis, you will have to pay tax on it.
This is the point.
Another point is, you took a loan from your employer.
You took your salary in advance.
You did not take a loan.
You took your salary in advance.
Suppose, your salary is Rs. 1 lakh.
And you took a loan from your employer of Rs.
15 lakhs.
And you said, gradually, from my salary, keep deducting Rs.
25,000 every month.
You took a loan.
And every month, from your salary, you will keep deducting
some amount.
So, what will happen in that case?
Sir, in that case, on due basis or receipt basis, will I
have to see all this?
I did not get his salary, did I?
Or did I get his salary?
He has taken a loan.
He did not get income.
Pay attention to this.
If he had income, he would not have to return it.
He has taken a loan.
When I give a loan,
I will have to return it.
If my intention is right.
Yes, if my name has been mentioned, like Mallya or Neeram
Modi, then you know what to do.
But, I ask you in common language, if you have taken a loan
from your employer, do you have income?
You will have to return that loan sometime.
So, in that case, if you take a loan from your employer,
your income will not be accepted.
Because you have to return that money sometime.
So, in that case, on due or receipt basis, you do not have
to see anything.
Your income part will not become a loan.
Your income part does not become a loan.
But the salary that you took 15 days in advance,
which you should have got, it was your right in a way.
You took 15 days in advance.
That is your income.
And on receipt basis, you will be taxed.
This is the point, friends.
Do some reading with me.
That advance salary that is taxable, when you receive it.
And see the difference.
The difference is that loan is different from salary.
When an employer takes a loan from his employer, which is
repayable in some installments, in some installments, you
cannot impose tax on the loan amount.
You cannot impose tax on the salary ahead.
Because you will have to return that loan sometime.
It is not a part of your income.
Similarly, advance against the salary is different from
advance salary.
Advance against salary is different from advance salary.
Advance taken by the employee from his employer.
You will adjust it with his salary.
This advance is generally adjusted with his salary over a
specified time period.