Salary is chargeable to tax on the basis of:
Areceipt only
Bdue or receipt, whichever is earlier
Cdue only
Dyear-end only
Answer & Solution
Correct answer: B. due or receipt, whichever is earlier
Salary is taxed on due or receipt, whichever is earlier.
Related questions
Provident fund is discussed in the salaries chapter because it isLeave encashment received by an employee is charged underGratuity received by an employee is dealt with under which head of income?In the salary computation, transport allowance appears asThe leave travel concession exemption is available toDeduction for entertainment allowance and professional tax is allowableUnder the default tax regime, house rent allowance isFor a payment to be taxed under the head Salaries, there must be