Para 47.

2 Salaries
Income-tax

by or on bcha
hall of
b.
any salary paid or allowed to him in the previous year an
or before it became due; and eimp,,
due
mer employer), though not him the prevIOus year by
or o in
any arTcars of salary paid orallowednot charged to
to income-tlax for any
earli
Cmployer (ora former employer),
if

year. previous 1999. ycar

o put it
differently,
the following are
taxable during ihe
although
it is received in a s1uh

during 1999-2000,
1.Salarywhich becomes"due" which will becomc duc masul..
1999-2000 but
which isreceived during ins to
it pertains to one
2Salary ol
1999-2000, although th
3.Any arrears ofsalary received during on due basis].
earlier
were not taxed
years and the same isearlier -Basis
Bas of
on "due"or"receipt" basis whichever is chargeable to ax eithe ha
47.2 Salaryis taxable section 15. Salary
income is fixed by if salary of 2000,
respect of salary earlier. For instance, -011
matures in the total income
of the
oron "receipt"basis, whichever is included previ
it
earlier on "receipt"hae
in advance in 1999-2000, matures
basis (as tax incidence in total incomer lu
1999-2000on "receipt" therefore, salary will not beincluded due in
1996-97 andpr

year 2000-01).
in
isnot relevant On the
this case;
other hand,salary,
in total income
which has
of the previous year
become
1996-97 on "due" basis t1
thes
2000-01, is included, basis is inapplicable; salary, wili, elor
matures earlier on "due" basis, "receipt" Tax is, thus, attracted at i
of tax
previous year
2000-01).
wherea
beincluded in totalincome of the it has been clarified
that
of time. For the removalofdoubt, it cannot char
possible point
in the yearof payment, be subsequently
is assessed
sec. 15). Similarly, salarv paid
if
paid in advance, I to
it becomes due (Erpin.
in the year in which it be taxed again when it is pauc
the past on "due" basis, cannot
has been assessed in
not been assessed on "due" basis ,it is
in arrears has

i
la
2to sec.5]. If, however, salary paid
which it is paid.
in
to be assessed in the year
Method of accountines
adoptedby employeenotrelevant- g ann
47.3 Methodofaccounting fixed by section 15.
vary the basis of charge
Ld. on the fixedsalary of Rs. 25,000
is in the employment of A
X
47-P1 Uptill June 30, 1999, month. On July 1, I999, joins B LId. X lars

the first day of the next

(s:a
which becomes due"on is
month). Salar actualh,
Pu
un,
which becomes due"onthe last day of each of salary (beforestandard dedue
Rs.30,000 per month Find out the amount clton
month in both cases.
seventh day of the next
to tax for the assessment
year 2000-01.
chargeable

the previous year 1999-2000-

Computation of salary for date or "receipt" date, nount
Due Rs.
Different months whichever is earlier

1999 25,000
April 1,
1. March 1999
May 1, 1999 25,000
2 April
1999
1, 1999
June 25,000

3. May 1999 1999 25,000

July 1,
4. June 1999 30,000
July 31, 1999
5. July 1999
August 31, 1999 30,000
6 August 1999
September 30, 1999 30,000
7.September 1999
October 31, 1999 30,000
& October 1999
1999 30,000
9 November 1999 November 30,
30,000
December 31, 1999
10 December 1999
2000 30,000
January 31,
11. January 2000
30,000
12 February 2000 February 28, 2000
30,000
13. March 2000 March 31, 2000
3,70,000
Total