My employer gives me Tax Calculation sheet from March to February. Is it right? (India)?

(India) Finacial Year is from April to March. Also Tax should be calculated from April 2007 to March 2008 for Finacial year 2007-08. But my employer sends me Tax calculation considering Feb 2007 to March 2008. How is it so? It is correct? (India)

Your Employer is absolutely right if he actually pays you your March month salary on or after 1st April. For your information, all Central Government (Govt. of India) employees are paid their salaries and calculated/adjusted/deducted income tax on this very pattern. Additionally, many PSU's and other corporate bodies also follow this pattern.

This practice though sounds strange but in vogue for decades now, though needs correction.

Your 12 monthly salaries are already counted (March to February) in a financial year and Income Tax authorities do accept this practice without any fuss.

Your logic of financial year (April to March) is fine but it has been a debatable issue for decades now and its correction has heavy financial repercussions on the exchequer.

calculation should be done from April to March...
taxes should be paid latest by the salary of February...

I would like to add some more point to above answer

1)income from salary is taxable on "due" or "received" which ever is earlier "rule.

2)salary of most of the govt deptt due on first day of the succeeding month but due to administrative measure its being disbursed on last or second last day of the month except salary for the month of march.

from point one as the march salary is due and paid after march 31 we can take this income in this year but have to take the salary in next year .

so as per income tax we have taken the income of the period 01.04.2007-31.03.2008 but as salary for the month of march 2008 is due on 1st April 2008 it will be income of 2008-09 and for the same reason income of march 2007 will be counted in 2007-08

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