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
taxindiaconnect
(Expert)
09 November 2010
Agreed with Shambhu
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- TDS on Fixed Assets purchased
- Capitalgain tax purposes for valuation report compulsory
- Non filing of I T Returns
- Oct 2025 Invoices
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
