21 July 2009
I relieved from my earlier company be giving them Notice pay of Rs. 50,000/ in April 08. I joined another company and they reimbursed me Rs . 50,000/. Second company has accounted this notice pay in their salary and deducted TDS. First company in their Form-16, not accounted this Notice Pay.
Question: Can i deduct this notice pay from the salary received from First company ( as mentioned in Form-16) or not.
22 July 2009
Notice Pay in other terms can be claimed as Return of certain amount of Salary for not fulfilling the service agreement and thus is deductable from the salary. As the first employer has not deducted the same in Form 16 while filing the return we can claim the same.
CAclubindia
