Umakanthan53
Labour Law & Hr Consultant
Sweta Parakh
Operations Manager

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Is it required to show Loan to employee in his salary slip and the repayment received/deducted thereof or should the loan component be kept separate from salary??
Both from taxation and HR view point.
Sweta Parakh

From India, Pune
Dear Sweta,
I don't think that recoverable loans and advances sanctioned to an employee could be treated as " income" earned by the individual and taxable under the Income Tax Act.
As you are well aware that salary slip is a periodical statement showing the gross salary earned by the employee, the statutory and other authorised deductions made and the net salary paid in a given wage/salary period.
Showing the amount and instalment number of recovery of loan in the salary slip would enable the employee to know the actual recovery under the head and the balance to be repaid by him.
Therefore, even in the absence of any statutory requirement relating to issue of salary slips and maintenance of Loans and Advances Register for employees, it would be an essential requirement both from accounting and HR view points.

From India, Salem
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™