Notice pay amount
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 January 2010
Hi expert
I recently changed my company. With my previous company I had 2 month employement agreement. But my next company wanted me to join in one month. So they Directly paid 1 month notice pay amount through Demand Draft to my previous employer. Now they have added this to my salary income. I am not at all benefited by this transaction. Whether this will be taxable in my hand? Second my previous company not showing this in my form 16. Please advise.
One more thing I would like to Mention is Company Directly paid to my previous employer. So money did not come to my hand at all.
Thanks & regards
Rajesh
I recently changed my company. With my previous company I had 2 month employement agreement. But my next company wanted me to join in one month. So they Directly paid 1 month notice pay amount through Demand Draft to my previous employer. Now they have added this to my salary income. I am not at all benefited by this transaction. Whether this will be taxable in my hand? Second my previous company not showing this in my form 16. Please advise.
One more thing I would like to Mention is Company Directly paid to my previous employer. So money did not come to my hand at all.
Thanks & regards
Rajesh
CMA Ramesh Krishnan
(Expert)
18 January 2010
What ever recover by the employer as notice pay should not add even they add to salary they have to show as deduction for notice pay.You can demand the employer for calculation salary tax do not add or add and show the recovery.
If the new company paid directly to youe previous employer the same should add in the salary of the present employer Form 16
If the new company paid directly to youe previous employer the same should add in the salary of the present employer Form 16
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