Queries from our readers on income tax and other levies answered by Dilip Lakhani Senior Chartered Accountant.
After paying four months' salary, my employer could not pay salary for FY16-17 due to financial problems. While I don't have any money, my CA insists that I should pay tax equivalent to TDS. I am not sure if I would receive the unpaid salary for the remaining months of the FY 2016-17. Do we have to pay tax even if I have not received salary, or can I pay tax when we actually get the pending salary? -Prof PG Makhija
Any salary due from an employer, whether actually received or not, is chargeable to tax under section 15 of the IT Act, 1961, under the head salary income. The total tax payable on your gross salary will be computed against which the credit for the tax deducted at source by the employer will be available and the balance amount of tax will be payable by you. Under section 192 of the IT Act, the employer is responsible to deduct the tax only when the salary is paid. In view of this legal position, you will be liable to make the payment of tax even though you have not received the salary.
I wish to sell my flat after July 17.Is there a GST on this transaction? -AA Neelakantan
As per the existing provisions of the Goods and Service Tax Act, the transfer of immovable property is outside the scope of levy of GST and hence you will not be liable to pay the GST on the sale of your property.