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I work in India and our company has announced salary advances for people who were affected by a recent natural calamity. Other companies too have announced similar ex-gratia incentives.

It is mentioned that the advance amount will be recovered over a period of 12 months starting next financial year.

My question:

If I avail this advance, will it be taxable , provided that I will be re-paying the amount in monthly installments?

closed as off-topic by Justin Cave, gnat, The Wandering Dev Manager, mcknz, Joe Strazzere Dec 13 '15 at 22:54

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  • 3
    Don't think of it like a loan, think of it as what it is - an advance. You either get it now and pay tax on it now, or get it in 12 instalments and pay tax on it then. – Jon Story Dec 12 '15 at 5:52
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The amount is taxable under the Income Tax Department of India.

However, you might want to confirm the same with the HR of your company, regarding the norms and regulations of the same.

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