Tax treatment of payment towards Notice pay
This query is : Resolved
09 November 2010
Hi!
our co. has reimbursed to an employee towards notice pay paid by an employee to his previous employer so that he can join our company earlier. please advise i should add the amount to his taxable salary. Can he show the income from previuos employer net of notice pay paid by him to his previous employer?
Rgds,
Ramesh
our co. has reimbursed to an employee towards notice pay paid by an employee to his previous employer so that he can join our company earlier. please advise i should add the amount to his taxable salary. Can he show the income from previuos employer net of notice pay paid by him to his previous employer?
Rgds,
Ramesh
09 November 2010
Mr .Ramesh as far i think whatever you will paid to your employee will be taxable in the hand of employee , further amount paid by an employee to his employer toward the notice pay will not be deductible .
Total remuneration received by your employee either from your company or previous employer will be taxable in the hand of your employee
No deduction will be allowed on account of amount paid to his previous employer as notice pay
Total remuneration received by your employee either from your company or previous employer will be taxable in the hand of your employee
No deduction will be allowed on account of amount paid to his previous employer as notice pay
09 November 2010
Agreed with Shambhu
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