Posted In: Income Tax
generally the financial year is calculated from april to march. but somebody told me that for the calulation of income tax of government servant the period is taken from march to feb. is it true. the logic was that the salary of march is given in april and therfore there are two salary in the month of april so to make it 12 month salary the period is counted from march to feb.
kindly throw light on this issue please
Date of receipt is the central idea. 1st Apr to 31st Mar is FY. If you receive march sal on 1st of Apr, it is pushed to next fin year only to relieve the govt from the burden of accounting salary on last day of FY. So in cal sheet you will see march salary to feb salary. that leads to interpret that it is march to feb. but it is not so. Eg. If you get any LTC EL encashment or arrears in March 31st, it will be accounted in the same year itself. This clarifies that FY is APR 1st to MAR 31st. This is a regular practice in all offices. they need not get confused about it. It will not make any difference.
- You must be logged in to reply to this topic.