Recovery of shortfall in notice period not reimbursed

ITR 1229 views 4 replies

Hi, 

If the previous employer has deducted an amount from full and final settlement due to shortfall in notice pay, say Rs 10,000 and bond of Rs.50000 . And the amount is not reimbursed by next employer. Can the employee claim that  amount of Rs. 20000 as loss/expense for that year? 

Replies (4)
hie sneha,
notice period is an policy, evry company may follow diff diff rule of notice period.
further, the balance shorfall should be deducted from his earned leave just after the notice.
further more, it should be ur gross salary based calculation and any notice pay payble by u was not ur accrued salary u can claim as deduction,
also as soon as ur next employer pay u ur notice pay reimbursement such shall be treated ur taxable income.
hope u cleared now about ur query.

Hi, 

U mean to say that if the next employer does not reimburse. The shortfall amount paid is tax deductible for the employee? 

not deductible dear, its nor allowed for exp.
as ur salary was not accrued to say


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