Tax deducted on salary not paid

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Sukhpreet (Querist)
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10 July 2012 My company didnt pay me anything for the days I worked in the month of May in my full and final since the notice period was not served. But still the salary for May is added into my Form 16 and tax was calculated on that amount. They say the part not paid is also taxable since it was my gross income although the amount was not paid. My question is in such case even when salary was not credited is tax payable on that amount

HRIDAYNATH PATRA

HRIDAYNATH PATRA (Expert)
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12 July 2012 In your case the company has debited salary charge account and in that case they have to deduct tax. If they have deducted tax from the amount of settement payment and then that has been deposited also. If it has been reflected in your Form 16 then you can clim the TDS benefit. Pls check your Form 26AS from nsdl-tin.

If they have not deducted any tax (if taxable income was below Rs. 1.8 or 1.9 lak) then you can made a submission before the company that the amount deducted from your settlement payment in lieu of notice period should be reflected in your Form 16.

In my opinion, the deduction for notice pay should be treated as "Loss of Pay" and benefit should be available for that.