Reimb. of Notice Pay Recovery
This query is : Resolved
Harshad Desai
(Querist)
05 December 2008
While leaving the present employer, amount towards short notice has been deducted by my present employer. Should this amount to be reduced from my taxable income?
Secondly, if this amount either in full or in part reimbursed by my new employer, then should it be considered taxable by my new employer?
Secondly, if this amount either in full or in part reimbursed by my new employer, then should it be considered taxable by my new employer?
CA. Mahesh Agarwal
(Expert)
05 December 2008
yes it should be deducted
and then reimbursement should be added to taxable income
and then reimbursement should be added to taxable income
K V Subba Rao
(Expert)
05 December 2008
Deduction of Notice Pay by your present employer being in the nature of application of your income by you does not qualify for Deduction or Exemption.
When it comes to receipt or reimbursement by your new employer is taxable as part of your salary
When it comes to receipt or reimbursement by your new employer is taxable as part of your salary
05 December 2008
Seems Rao's answer is correct.
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