What is difference between foregoing and surrender of salary?

Answer 1

Foregoing: waiver of salary by an employee is called foregoing of salary. Since income under the head 'Salaries' is taxable on accruel or reciept, whichever comes earlier, the entire amount foregone will be taxable in the hands of employee. Eg: an employee directs his employer to give his salary to a charitable trust. The amound given to charitable trust is taxable in the hands of employee.

Surrender: If an employee surrender his salary to the central government under the Voulantary surrender of salaries act 1961, the tax on such amound surrenderd need not be paid.