Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Salary deduction

25 December 2019

if a person leave job before it's specific period and he has to pay the company for that will it be deduct in salary head ,if yes in which head

Reply
Follow
Share

7 Replies

Kapadia Pravin (17259 Points)
Replied 25 December 2019

No that is not an Allowable deduction

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 25 December 2019

You can show the salary value after less the recovery amount...

Kapadia Pravin (17259 Points)
Replied 25 December 2019

It's not deductible for salary. There is no section which permits such deduction.

What connection this has with regular salary received from employer ?

In Form 16A you won't find this payment.

Seeking deduction is baseless.

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 25 December 2019

Here nobody says it's deduction...
As per above query as notice period employee will give amount to employer. So, the amount can be less in Salary value...

Kapadia Pravin (17259 Points)
Replied 26 December 2019

@ Megha

The query relates to a person leaving job / terminating before a contracted specified period. ( in violation of a bond period of employment / pre-mature leaving)

So employee has paid to Company for a breach as per agreement conditions. This payment by employee to a company is not allowable as deduction to employee neither under salary head nor under any other head.

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 26 December 2019

@ Megha.,

It's not a deduction under any of the sec...

The amount is given to employer based on employment activities not for income tax activities. If income tax payable our salary then salary will be given to employer then why we can pay Tax on it...

You can Less the penal amount directly in Your salary value...