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Thread: taxable income on the basis of actual receipt

  1. #1
    Junior Member bsp is on a distinguished road
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    Default taxable income on the basis of actual receipt

    hello members
    my annual salary for the f.y. 2009-10 worked out to rs. 3,00,000 including 6th cpc arrears. my employer didn't excluded the arrears from my taxable income stating that although the arrears pertains to the previous arrears yet the income in the form of arrears was received in the f.y. 2009-10 itself and hence is taxable in the f.y. 2009-10. Point accepted.
    in the f.y. 2011-12 there was a recovery from my income due to wrong fixation of pay w.e.f. 1.1.06 and the recovery was affected from my salary. Ironically enough, my employer added the recovered amount to my taxable income stating that although the recovery was made in the f.y. 2011-12 yet the recovery belonged to previous years and hence can't be deducted from the taxable income of f.y. 2011-12. The logic of my employer doesn't seem convincing to me this time.
    Can anybody throw some more light on this based on common sense or some authority/rule?
    Thanx in advance.

  2. #2
    Senior Member RKPATHAK is an unknown quantity at this point
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    Actual amount of salary received during a year is taken into account while calculating income tax

  3. #3
    Junior Member gtresures is on a distinguished road
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    1. CPC Arrears : You should have given Form 10E for distributing 9-10 income to previous years. that would have solved the problem
    2. Recovery : Date of recovery determines the FY. So your employer was wrong. However, you can do the required corrections while submitting ITR, if your employer disallows it by mistake. ITR is your final say. So you can claim refund of tds there. that is the only solution. you cannot compel some employers who act like dictators

  4. #4
    Senior Member Victor is on a distinguished road
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    Quote Originally Posted by gtresures View Post
    1. CPC Arrears : You should have given Form 10E for distributing 9-10 income to previous years. that would have solved the problem
    2. Recovery : Date of recovery determines the FY. So your employer was wrong. However, you can do the required corrections while submitting ITR, if your employer disallows it by mistake. ITR is your final say. So you can claim refund of tds there. that is the only solution. you cannot compel some employers who act like dictators
    I agree

    Victor

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