Notice period recovery amount

482 views 3 replies

Shailender Jain

3 Points Joined August 2019

My issues something similar to https://www.financialexpress.com/money/now-you-dont-need-to-pay-income-tax-on-notice-period-pay-cut/644193/

I had left my company 1 and joined company 2. Company did a final settlement where tax is calculated on the salary pending for me. The tax was calculated against the entire "pending salary". However, while calculating net salary company deducted an amount under the heading "Notice Pay Recovery". This means tax on my salary is calculated without deduction of heading "Notice Pay Recovery". As per company there is no such heading/provision in the income tax

I would like to know if i can claim income tax refund. If yes, then how this can be done online

Replies (3)

Kapadia Pravin

17264 Points Joined December 2018

Salary is taxable on due basis. There is no specific provision under the Act under which a deduction can be claimed for such notice pay recovery.
You have consider Form 16 alongwith annexure as Salary Income (without considering notice pay recovery)

Shailender Jain

3 Points Joined August 2019

Thanks... Were you able to check on the link https://www.financialexpress.com/money/now-you-dont-need-to-pay-income-tax-on-notice-period-pay-cut/644193/ It seems ITAT Ahmedabad had a different observation...

Kapadia Pravin

17264 Points Joined December 2018

There is one more ITAT decision which is unfavor able to assessee
If salary &TDS are not as per Form 16 and 26AS then surely notice from Itax. In the absence of specific provision , it won't be allowed in normal course.