I work for a college. It is run by a trust, so we did not have a bank account with a net banking facility. During the pandemic, I transferred the staff salaries to their accounts by first moving the lump sum amount from the college account to my personal account (with net banking) and then transferring the salaries from my account to the staff accounts.
My query is whether I will be liable to pay income tax due to this transaction.
Acknowledge(0)
Amend(0)
My query is whether I will be liable to pay income tax due to this transaction.
Acknowledge(0)Amend(0)
Tax Liability on Transactions as an Agent
You are not liable to pay tax on the transaction as you were acting as an agent of the college due to extraordinary circumstances. However, it is advisable to document this properly.
In any case, you can expect a query, notice, or show-cause from the income tax department on the matter. Therefore, take the help of your trust's CA to be ready with the replies and justifications.
From India, Mumbai
Acknowledge(2)
Amend(0)
2508You are not liable to pay tax on the transaction as you were acting as an agent of the college due to extraordinary circumstances. However, it is advisable to document this properly.
In any case, you can expect a query, notice, or show-cause from the income tax department on the matter. Therefore, take the help of your trust's CA to be ready with the replies and justifications.
From India, Mumbai
Acknowledge(2)Amend(0)
Managing College Transactions and Personal Accounts
Unusual and large transactions are routinely reported by banks. To avoid confusion between official and personal transactions, it is best to open a separate bank account and conduct college transactions solely through this account. The issue of income tax for the transaction does not arise, but there may be queries regarding the nature of the transaction.
From India, Pune
Acknowledge(1)Amend(0)
Unusual and large transactions are routinely reported by banks. To avoid confusion between official and personal transactions, it is best to open a separate bank account and conduct college transactions solely through this account. The issue of income tax for the transaction does not arise, but there may be queries regarding the nature of the transaction.
From India, Pune
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls