Whether Foregoing of Salary taxable under Income from Salaries?

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