Meaning of foregoing of Salary?

It means waiving the right to receive Salary,

i.e. Work has been perforrmed and salary has accrued but employee voluntarily says that he will not take salary

Example

Suppose Mr A worked for the whole month at a salary of 25000 per  month,

On salary date,he says that he does not want to receive Salay.,instead he has asked his salary to be donated for a charitable cause,

This is called foregoing of salary

 

 

Taxability

Even if salary is foregone,still it is taxable under Income from Salaries as income has accrued.

Subsequent waiver does not absolve him from  liability to pay Income tax

 

Exception

If Salary is surrendered as per Voluntary Surrender of Salary (Exemption from Taxation) Act,1961,then such salary will be exempt

 

  1. Income Tax
  2. Income from Salaries
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.