What happens when you forego/surrender your salary?

Ever thought the tax implications on your salary when you deny your salary or pay back your salary to your employer? 

What is foregoing of salary?

Suppose you have worked for your employer in  the month of February 2019. But at the end of the month, you direct your employer to donate your salary to an Ashram nearby. 

Would your salary for the month of May be taxable?

Yes, even if you had foregone your salary in the favour of the needy, your salary would be taxable in the AY 19-20.
But yes you will be eligible for section 80G deductions.

What is surrender of salary?

If you are a Central government employee and wants to surrender your salary as per section 2 of the Voluntary Surrender of Salaries Act 1961, your salary would not be taxable. In other words your salary unlike foregoing of salary will be tax free.

For example a war takes place between India and Pakistan. To help the Indian victims of the war, the employees may surrender their salary to the Central government. In such cases, no tax would be charged on the surrendered salary.

Check the amended rebate system providing huge relief to you.