17 November 2009
The notice pay (Paid at the time of resignation to the employer without serving the notice period)can be claimed as deduction from the gross total income by the employee?
17 November 2009
No, although this is outflow/expenses in the hands of the employee there is no provision for adjusting/deducting expenses for computation of income under the head Salary.
17 November 2009
Once salary is earned by an emoployee, it becomes taxable in his hands. The amount paid as notice pay amounts to an application of income and it cannot be claimed as deduction from salary income
CAclubindia
