MRink - Finance and Income Tax

A. Brief of Salary Taxability ​​​​​​​​​Section 17​​ of the Income-tax Act defines the term ‘salary’. Generally, it includes whatever is received by an employee from an employer (current as well as former) in cash, kind or as a facility (perquisite / allowance). It shall be chargeable to Income Tax, considering the following: Due in previous year, whether paid or not (i.e., salary accrued) Paid or allowed in the previous year, though not due or before it became due (i.e., advance salary) Arrears of salary paid or allowed in previous year, if not taxed earlier (i.e., arrears of salary) For advance salary and arrears of salary, the Act has provided relief u/s. 89 for the differential amount of tax –  Click here  to read our detailed article on the same. B. Taxability of Allowances received as a part of salary Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Child educa

Dear Readers, Many of you must be aware that the due date of filing Income Tax Returns (“ITR”) for Financial Year 2021-22 (“FY 2021-22”) or say Assessment Year 2022-23 (“AY 2022-23”) for Individual / HUF/ AOP/ BOI, in whose case tax audit is not applicable is approaching and one needs to file the same latest by 31st July, 2022 for timely compliance of the same. However, if the same could not be met due to any reason, one can file the same belatedly by 31st December, 2022. Further, to bring your knowledge, we would like to mention here the repercussions of the case when ITR could not be filed within the original due date i.e., 31st July, 2022.  Penalty u/s. 234F of ₹ 5,000/- if the total income exceeds ₹ 5,00,000/- and in other case it would be ₹ 1,000/- Interest u/s. 234A at the rate of 1% for every month or part of a month on the unpaid tax amount,  comprised in the period commencing on the date immediately following the due date till the date of furnishing ITR So, for your ready re