Income tax on notice period shortfall pay cut

[Guest]

Hello,

I left my previous employer on 13th April 2018 and communicated to them that I will not be able to complete my full notice period (2 months) because of which they cut an amount (Rs 23077) for notice period shortfall from my Full and Final settlement. But they added this amount in full in my Form 26AS as a part of the amount paid to me, which I did not receive at any point of time. I communicated this to them via email. After many continuous and multiple reminders, I received a reply from them where they said that they will not be able to correct my Form 26AS.

The impact here would be that I will have to show this amount in my income in financial year 2018-19 and will have to pay tax on the amount which I did not receive and which was not a part of my salary.

Could someone please confirm if this amount is taxable? I searched on the internet and saw somewhere that according to the verdict of Income Tax Appellate Tribunal(ITAT), this income is not part of my taxable income.

Thanks,
Vaibhav Mittal

AI Summary

Employee Faces Tax Confusion Over Deducted Salary in Form 26AS; Seeks Clarification on Tax Liability and Refund An individual left their job before completing the required two-month notice period, resulting in a deduction of Rs 23,077 from their final settlement. However, this amount was incorrectly included in their Form 26AS as income received, leading to a potential tax liability on money not actually received. The individual sought advice on whether this amount is taxable and how to address the discrepancy. A respondent advised that if there is evidence of the deduction, the individual could claim the excess tax in their tax return. The discussion highlights confusion over tax deductions and Form 26AS entries.