Salary due for March 2026 but received in April 2026 is assessed in which previous year?
AP.Y. 2025-26
BP.Y. 2026-27
CP.Y. 2024-25
DP.Y. 2027-28
Answer & Solution
Correct answer: A. P.Y. 2025-26
1. The salary became due in March 2026, which falls in the previous year 2025-26.
2. It was received in April 2026, which falls in the next previous year.
3. Due is the earlier of the two events, so the due date fixes the charge.
4. It is therefore chargeable as income of P.Y. 2025-26, assessment year 2026-27.
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.2 example_
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