Section 15 of ITA, 1961 : Section 15: Salaries

Explanation using Example

Imagine John is employed by XYZ Corp and his annual salary is due at the end of the financial year on March 31st. However, XYZ Corp decides to pay him his salary in advance in December of the previous year. According to Section 15 of the Income-tax Act, 1961:

• John's advanced salary would be taxable in the previous year when he received it (December), even though it was not due until March of the following year.
• If XYZ Corp later pays John s...

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