Where in books of accounts notice pay
This query is : Resolved
19 September 2012
Dear Seniors,
Please refer a statement here,
"when Notice pay does not rank for P.F deduction, it goes without saying that it is not wage or salary and when it is not wage or salary, in my view , it cannot be shown under salry or wages head.Further the object of notice pay is to enable the employee to tide over a posiible finacial hardship caused by sudden unemployment and thus it is in the nature of subsitence allowance, required by the employer to pay to the employee to enable him to fend for himself till he finds another job but with a time cap of one month. The basis for deciding "one month wages" is a merely to work out a formula agreed up on by the employer and employee to quantify such subsistence allowance but does not render it on par with wages. Therefore, in my view, it may have to be shown under different head of income but not salary. It is better to consult a Chartered accountant in this regard."
Would request if you can please inform where in books of accounts do we place notice pay.
Would request your solution to it at please
Please refer a statement here,
"when Notice pay does not rank for P.F deduction, it goes without saying that it is not wage or salary and when it is not wage or salary, in my view , it cannot be shown under salry or wages head.Further the object of notice pay is to enable the employee to tide over a posiible finacial hardship caused by sudden unemployment and thus it is in the nature of subsitence allowance, required by the employer to pay to the employee to enable him to fend for himself till he finds another job but with a time cap of one month. The basis for deciding "one month wages" is a merely to work out a formula agreed up on by the employer and employee to quantify such subsistence allowance but does not render it on par with wages. Therefore, in my view, it may have to be shown under different head of income but not salary. It is better to consult a Chartered accountant in this regard."
Would request if you can please inform where in books of accounts do we place notice pay.
Would request your solution to it at please
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- FEMA regulation Act. for inward remitance
- Rental income of jointly held property
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
