Income tax in case of deferred salary paid in 2009?



I have changed two jobs during 2008-2009. So I have form-16 from two companies. One of my companies cleared my Dec,2008 salary and other dues in Jun,2009.
Some how the TDS deducted is not enough and my current employer also has not taken my past salary into account.
Since the deferred salary was credited in Jun2009, Am I liable to pay tax in this financial year or the next year.

Any help in this regard would be appreciated.

Income tax in case of deferred salary paid in 2009?
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5 Replies to “Income tax in case of deferred salary paid in 2009?”

  1. 1) In the case of lesser amount of TDS deduction by current employer by not considering salary drawn from the previous employer you can pay the balance amount of tax by self assessment tax.

    2) In case of Deferred Salary for the financial year 2008-09 paid in 2009-10 by previous employer. It will be taxable in the finanical year 2009-10 however you can claim rebate U/s. 89 of Income Tax Act, 1961.



  2. Sec 15 clarifies that Year of chargeability of salary:

    The following income shall be chargeable to income-tax under the head “Salaries” :-

    (a) Any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;

    (b) Any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him;

    (c) Any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

    Explanation 1 : For the removal of doubts, it is hereby declared that where any salary paid in advance is included in the total income of any person for any previous year it shall not be included again in the total income of the person when the salary becomes due.

    Explanation 2 : Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as “salary” for the purposes of this section.

    HMT


  3. Salary Income is taxable on Accrual basis. So you will be liable to pay taxes on salary received from both the employers in Assessment year 2009-2010 and have to pay the balance taxes if TDS deducted by both the employees is not sufficient to cover your tax liability.


  4. Though you have been paid your 2008-09 (December 2008) salary belatedly in June 2009, It is income earned by you in the year 2008-09 and therefore it is taxable in this year. You have to use both the form 16 issued by your earlier employers to file your Income tax return now. As for short deduction of Tax (TDS), before you file the return of income, you will have to pay the difference in tax together with interest, if there is any, on self assessment basis.





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