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

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Justin Cave, gnat, The Wandering Dev Manager, mcknz
If this question can be reworded to fit the rules in the help center, please edit the question.

  • 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

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.

Not the answer you're looking for? Browse other questions tagged or ask your own question.