Deduction - notice pay salary

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Whether Notice pay salary Recovered by employer shall be allowed as deduction for employee, while computing his income under the head salary?

AI Summary

Debate on Whether Notice Pay Recovery is Deductible from Employee's Taxable Income Under Salary Head A discussion arose regarding whether notice pay salary recovered by an employer can be deducted from an employee's taxable income under the salary head. One participant stated that notice pay might be considered a salary deduction, but there is no provision to reduce it in Form 16 or the employee's taxable income. Another participant argued that notice pay cannot be deducted as it is considered a penalty for breaching contractual obligations, and thus cannot be deducted from the employee's income in their tax return.