Tax treatment of notice pay
This query is : Resolved
Ishwar S. Gandhi
(Querist)
10 August 2011
X Employer is deducted from gross Salary Rs.48000 as notice Pay it is included in form 16, Y Employer reimbursed it & included it while calculating Gross salary.
What will be the Correct tax treatment?
How it should be shown while computing Total Income ?
What will be the Correct tax treatment?
How it should be shown while computing Total Income ?
CMA Ramesh Krishnan
(Expert)
10 August 2011
You can request your previous employer to show the correct salary after deducting the notice pay
Present employer need to add the paid salary for notice period need to taxed and tds need to deduct
while computing total income this income need to be added one time only
Present employer need to add the paid salary for notice period need to taxed and tds need to deduct
while computing total income this income need to be added one time only
Ishwar S. Gandhi
(Querist)
10 August 2011
ya thats why i am confused.....
in current case the same may be taxed twice......
in current case the same may be taxed twice......
CMA Ramesh Krishnan
(Expert)
10 August 2011
Request can be given to employer. or if the deducted tax both side, while calculating income tax your side the same can be considered and file for the refund. you should have proper copy for deduction of notice period salary
U S Sharma
(Expert)
10 August 2011
notice pay is penalty for non intimation of notice in time, so it can not be reduced from taxable salary.
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