Dear Sir,
Whether amount paid to previous employer (private sector) in lieu of not serving the notice period after resignation is tax deductible expense? If yes, under what section? I joined the new organisation, next working day.
Thanks.
Anil Agrawal (CEO) (30 Points)
27 July 2011Dear Sir,
Whether amount paid to previous employer (private sector) in lieu of not serving the notice period after resignation is tax deductible expense? If yes, under what section? I joined the new organisation, next working day.
Thanks.
Prakash kumar panda
(Manager-finance)
(38 Points)
Replied 27 July 2011
Hi Anil,
this is a typical situation but quite common in todays scenario.Unfortunately tax is chargeable based on the income shown as per the Form-16 and there is no other expenses are deductible in case of salary income .Ultimately the whole salary gets taxed though not received
Any other view is welcome
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