Income tax for notice period and leave encashment
This query is : Resolved
22 April 2010
Sir,
I have resigned from a company in gurgaon.
wehre i have to serve a notice period of 2 months.
but i served only for 9 days.
Problem:
I have balance leave of 50days.
What my company did was
they encashed the leave for 50days and collected the tax on it by including in my taxable salary.
after that they recovered the due for 51 days from my salary and this deduction is not shown in tax deduction sheet.
As the encashed amount i did not recive it can the company collect tax on which was fortified by the company itself.
I have resigned from a company in gurgaon.
wehre i have to serve a notice period of 2 months.
but i served only for 9 days.
Problem:
I have balance leave of 50days.
What my company did was
they encashed the leave for 50days and collected the tax on it by including in my taxable salary.
after that they recovered the due for 51 days from my salary and this deduction is not shown in tax deduction sheet.
As the encashed amount i did not recive it can the company collect tax on which was fortified by the company itself.
CMA Ramesh Krishnan
(Expert)
23 April 2010
It seems Encashment of Leave type .ask company to treat the taxability on the basis of Leave encashment
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