A Employee has left the company in the first month of the notice period (total notice period - 3 Months) and paid compensation to the company for two months salary.
I would like to know about the tax effect on Employee (including for Form 16A) and also on the company.
Can the Company reduce the amount of compensation received from the employee in calculating the final TDS liability of the said employee at the time of full & final settlement?
On the other hand can the employee claim the salary paid back to the company, as deduction from the total salary income earned?
TDS on Compensation
Rachit (Analyst) (913 Points)
17 December 2010
CAclubindia
