Q.Mr. Roy's salary for March 2026 became due to him on 31st March 2026, but his employer actually paid it to him only on 10th April 2026. In which previous year is this salary chargeable to tax? Explain with reference to Section 15.

Salary is charged to tax on whichever of the due basis or the receipt basis happens earlier, so a salary that is already due does not wait for the year it is actually paid.

Under Section 15, salary due to an employee is chargeable to tax in the year it becomes due, even if actually paid later.

Under Section 15 of the Income Tax Act, 1961, salary is chargeable to tax on whichever of the following happens EARLIER: the date it becomes DUE, or the date it is actually PAID or allowed to the employee. Mr. Roy's salary for March 2026 became due to him on 31st March 2026 — which falls within the Previous Year 2025-26 (1st April 2025 to 31st March 2026). Since the DUE date (31st March 2026) is earlier than the actual date of payment (10th April 2026, which falls in the following Previous Year 2026-27), Section 15 fixes the year of taxability at the DUE date. This salary is therefore chargeable to tax in Previous Year 2025-26, assessed in Assessment Year 2026-27, and must NOT be taxed again in Previous Year 2026-27 merely because it was physically paid in that year — doing so would tax the same salary twice.

Students sometimes tax salary in the year it is actually RECEIVED without first checking whether it had already become due, and therefore already taxable, in an earlier year — always check the due date first; the receipt basis only applies when payment happens before the salary becomes due.