Income u/h salary

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CA Nidhi Goel (Querist)
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13 September 2012 Suppose Mr.A is an employee at X ltd. He left the job and joined another job at Y Ltd. Now, X ltd deducted some expenses regarding notice from his salary. But he paid tax on it. Now Y Ltd. reimburse the lose arise to him for forgoing salary and also deducted TDS. Can he get deduction from the tax that paid twice by him. once paid by him and deducted as TDS. IS there any case law regarding this??

If any...
Plz help...

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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13 September 2012 In my opinion,In this case there is no TDS refund applicable.

1. Mr A is supposed to compensate Co X for notice formality which the Co deducted from His salary. This is not deductible in the first place.

2. Y Ltd reimbursed the "loss arisen due to forgoing salary" which is nothing but Profit in lieu of salary. Y Ltd has rightly deducted tds from this.

So in this case, no tds refund is due

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CA Nidhi Goel

CA Nidhi Goel (Querist)
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13 September 2012 Thank you...