So, this was it. Advance against salary.
What happened? You got a loan and what is advance salary?
It is your salary, you just received it a little earlier.
So, advance salary is taxable on your receipt basis and the
loan you take, its taxability will not come in the salary
head.
Let's move on to the next one.
Areas of salary.
Areas of salary means that like you had a salary, you
didn't receive it.
It is due but you didn't receive it.
Receipt will come later, next year for example.
So, in that case, the tax on areas of salary will be
applicable on due basis.
But there are some cases, the government has specified,
like if you remember, you read the newspaper, that 6th pay
commission, 7th pay commission, all this goes on.
What happens in that?
In that, the government employees
their salary, retrospective date, means from a back date, 6
months ago or a year ago, their salaries will increase.
Means if I am standing in 2022 and today this pay
commission comes, then the order will come that if this
employee was working here since 2021, then his salary from
1st April 2021, increase it a little.
If you increase it, then what will happen in this case?
When I will get the receipt, then it will be applicable on
tax.
Only in this case.
Rest, if I have this, that I am working somewhere on
salary, it will be on due basis, salary will be due,
I haven't received it yet,
I will receive it next year, due will be today, so when
will the income tax take tax from me?
Today, on due basis.
Separate this.
What I am talking about,
I am talking about some cases, they are saying that we will
give you a little increased salary from the back date.
I didn't know how much my salary will increase from the
back date.
So in that case, the government said that tax will not be
taken from you on due basis, because it is not even
possible.
I am in 2022.