Asset Damage Recovery By Company Tax Liability

If the company deducts recovery amount from the salary. Will employees need to pay tax on the amount or that is adjusted in form 16 by the employer?

Replies (2)
Quick Summary
This discussion clarifies the tax implications when a company deducts the cost of damaged assets from an employee's salary. It addresses whether employees are liable for tax on the deducted amount or if this is handled through adjustments in their Form 16 by the employer. The conversation also touches upon the company's tax liability in such scenarios.

Tax on salary amount reduced for the damage is also required to be paid.

Company tax liability

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