I resigned from the company and ₹ 2,00,000 was payable to me on account of salary and leave encashment.The company also deducted ₹ 50,000 as notice pay recovery.The company is deducting TDS on rs. 2 lakhs and not reducing my income to ₹ 1..50 lakhs.Is the stand of the company correct?
I will get ₹ 50,000 from current employer as agreed at the time of joining that any notice pay deducted by the previous company shall be reimbursed by the current employer.Can I request the current employer to not to tax this 50,000 as it has already been taxed for the purpose of TDS.
Can a new employer avoid taxing a 50,000 reimbursement for notice pay already subjected to TDS deduction? An individual resigned from a company where they were owed 2,00,000 for salary and leave encashment. The company deducted 50,000 as notice pay recovery but calculated TDS on the full 2,00,000 instead of the net 1,50,000. The individual is set to receive 50,000 from their new employer as reimbursement for the notice pay. They are inquiring whether the new employer can avoid taxing this reimbursement since it has already been subjected to TDS. A respondent suggested seeking further clarification if needed. (AI Summary)
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