Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Income Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Deduction - notice pay salary, Income Tax

Issue Id: - 986
Dated: 26-12-2008
By:- vikas girdhar

Deduction - notice pay salary


  • Contents

Whether Notice pay salary Recovered by employer shall be allowed as deduction for employee, while computing his income under the head salary?

Posts / Replies

Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 31-12-2008
By:- Surender Gupta

Notice pay salary may be considered as deduction of salary by the employer. It is the form 16 issued by the employer which helps to decide that it is deduction from the salary to compensation paid to employer. But, there is no separate provision to reduce the notice period salary from the salary shown inform 16 by the employee from his tasable income.


2 Dated: 1-1-2009
By:- A RAVINDRA

No. It can not be deducted from salary income either in form 16 or in ITR filed by the assessee. The notice period salary recoverd from employee by employer is in the nature of penalty for voilation of contractual obligation. Hence the said recovery can not be deducted from the income of employee in his return.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates