TaxTMI 
TaxTMI 
TaxTMI 
Deduction - notice pay salary
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....eduction - notice pay salary<br> Query (Issue) Started By: - vikas girdhar Dated:- 26-12-2008 Last Reply Date:- 1-1-2009 Income Tax<br>Got 2 Replies<br>Income Tax<br>Whether Notice pay salary Recovere....
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....d by employer shall be allowed as deduction for employee, while computing his income under the head salary? Reply By Surender Gupta: The Reply: Notice pay salary may be considered as deduction of sa....
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....lary by the employer. It is the form 16 issued by the employer which helps to decide that it is deduction from the salary to compensation paid to employer. But, there is no separate provision to reduc....
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....e the notice period salary from the salary shown inform 16 by the employee from his tasable income. Reply By A RAVINDRA: The Reply: No. It can not be deducted from salary income either in form 16 or....
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.... in ITR filed by the assessee. The notice period salary recoverd from employee by employer is in the nature of penalty for voilation of contractual obligation. Hence the said recovery can not be deduc....
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....ted from the income of employee in his return.<br> Discussion Forum - Knowledge Sharing ....