Salary for April 2026 drawn in advance in March 2026 is chargeable
Aon due basis in P.Y. 2026-27
Bon receipt basis in P.Y. 2025-26
Con receipt basis in P.Y. 2026-27
Don due basis in P.Y. 2027-28
Answer & Solution
Correct answer: B. on receipt basis in P.Y. 2025-26
1. The salary relates to April 2026 but was drawn in March 2026.
2. Receipt in March 2026 is the earlier event, so receipt governs.
3. It becomes chargeable on receipt basis, assessed as income of P.Y. 2025-26.
4. Consequently the later year will not include that April 2026 salary again.
5. Applying the due basis here would push the charge a full year later, which the rule forbids.
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.2 example_
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