An Employee pay the notice pay at the time of leaving the employer the same is reiumbursed to him by the new employer. What will be taxablity of the same.
Is there is any impact on taxationif the notice pay is paid by the new employer to the former employer directly?
Deduction by the previous employer as well as reimbursement by the new employer is the result of contract of employment, so deduction should be deducted and reimbursement should be added for arriving at gross taxable income.
Regards
CAclubindia
