- A is an employee of X corporation. A’s compensation package includes two different advances. One is Zeus Scheme Advance and other is Junior Advance. These two are salary advances and hence they are taxable in the year in which it is received. A has a three year bond with X corporation. If A leaves the company before 3 years company will deduct the aforesaid advances from the salary and other benefits payable to A at the time of full and final settlement.
Whether the same will be allowed as deduction under any head?
If not how can the employee claim relief for the same since the advance has been taxed in earlier years and now the same is deducted from current year salary?
Can the net amount of salary for the assessment year be taxed in the last year of service after deducting this amount?
Please do spare your time and answer the above.....
Thanks in advance
CAclubindia
