I have query about any exemption regarding notice period salary. As per my old company norms, I have to serve notice period of two months.But I didnot served and instaed paid them for two months. One month salary amount has been paid by my new company and other month I have paid.Tax has been deducted by new company.
Is there any exemption for the amounts as this is not my income?
11 May 2010
One month salary paid by new employer is taxable in your hands-new employer discharges your monetary obligation
One month salary paid by you from your pocket is not eligible for any tax benefits-it is treated as "application of salary" on par with your spend for food, clothes etc
CAclubindia
