Deduction of Income Tax for reimbursement of Notice Period

[Pradeep Jain]

Querry is that -

Is present employer is liable to deduct TDS on  reimbursement the amount of notice period  to new employee ?. We seek your valuable legal advise,

Thank in advance.

Pradeep Jain

[manoj kumar]

As  per section 192,tax is deductible on any amount which is paid by employer to employee by reason of employment.

As Notice Period amount is paid by reason of employment,So Tax at source is deductible from payment to new employee.

AI Summary

Employers Must Deduct TDS on Notice Period Reimbursements for New Employees Under Section 192. A query was raised regarding whether an employer is required to deduct Tax Deducted at Source (TDS) on the reimbursement of a notice period amount to a new employee. The response clarified that, according to Section 192, tax is deductible on any amount paid by an employer to an employee due to employment. Since the notice period amount is paid by reason of employment, TDS is applicable on such payments to the new employee.