compensation for loss by employee

Sir as salary is taxed on receipt or due which ever is earlier basis tax will have to be paid on your normal salary..only deductions said as per sec 16(ii) n 16(iii) can be claimed from it and other sec 10 exemptions too i think 

Dear Kumar Guru,

Interesting one.....

I think ANSWER IS YES......

First of all the amount that he had stolen will be taken as his Income from other sources & then followed by the deduction of the amount what he had to return to his employer........

Infact ur case reminds me of that famous case where an assesee was a smuggler & on seizure of by Custom Department, SC had held that the amount of seizure should be allowed as deduction in computing the income...CIT v/s Piara Singh

Agree with fiend Hareesh, no deduction will be made under head salary........

Mr. Kumara Guru..

Really an interesting case....

I have heard something like theft,loss, damage but not compensation received for that....

I do agree  with above answers "Yes".....

Mr.Amir brother thanx for posting the case here......