Section 110 of Income Tax Ordinance, 2001 for payment of tax on salary income of earlier year paid by the private company.
Following is the text of Section 110 of the Income Tax Ordinance, 2001:
110. Salary paid by private companies. — Where, in any tax year, salary is paid by a private company to an employee of the company for services rendered by the employee in an earlier tax year and the salary has not been included in the employee’s salary chargeable to tax in that earlier year, the Commissioner may, if there are reasonable grounds to believe that payment of the salary was deferred, include the amount in the employee’s income under the head “Salary” in that earlier year.