Notice Period Salary

This query is : Resolved

Santanu Roy (Querist)
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11 May 2010 Hi,

I have query about any exemption regarding notice period salary. As per my old company norms, I have to serve notice period of two months.But I didnot served and instaed paid them for two months. One month salary amount has been paid by my new company and other month I have paid.Tax has been deducted by new company.

Is there any exemption for the amounts as this is not my income?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 May 2010 This actual salary income only.because your obilgation is to pay notice period that is paid by the new company so it is taxable only

K V Subba Rao

K V Subba Rao (Expert)
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11 May 2010 One month salary paid by new employer is taxable in your hands-new employer discharges your monetary obligation

One month salary paid by you from your pocket is not eligible for any tax benefits-it is treated as "application of salary" on par with your spend for food, clothes etc

Please check the following link-

https://www.taxworry.com/2007/04/notice-pay-to-employer-is-not.html