17 February 2009
My previous employer deducted notice pay and the same was not deducted from total salary mentioned in Form 16. My current employer is not reimbursing it. Whether is there any way to claim a refund?
The amount deducted is my expense and it is an income for the employer. It should be taxed in the hands of the employer. Now it is double taxing for the same amount.
17 February 2009
If your employer has deducted Notice Pay then how can he mention the same in Form 16. You should talk with your employer and explain the status. If you have not received Notice pay amount and in future it is also not receivale to you then i am of the opinion that It should not be treated your income.
Notice pay is considered as penalty for short notice and it is deducted by the employer from employee settlement check.
My previous employer is not agreed to reduce the deducted amount from Form 16. Now i need to pay tax for that amount which is not earned.
My previous employer will give hard copy of the settlement details and using that whether i could do any refund appeal with income tax dept? If so then what is the procedure?
One last question: While filling tax return, I could deduct the amount and recalculate the income and refund details and attach the required proof with that. OR I could get help of an auditor and submit returns through him.
My question is whetehr i could recalculate and submit the tax return or get help from auditor?
CAclubindia
