Deduction towards Short Notice Period of Leave

Sir,

In the Month of January, 07,  I resigned from a Central Govt PSU and joined a Pvt Company.  My ex-Company stipluates 90 days as Notice Period for Resignation. Since, there was shortage in Notice Period, I had to make payment of about Rs.55,000/- before getting relieved.  I have made the payment (through a single Cheque) along with my other outstanding loans with the Company, in January, 07.

 

My question is, please clarify the following; 

 

- can I reduce this amount deducted for Short Notice Period (Rs.55,000/-) from my taxable salary while filing returns, as my actual Salary received during 2006-07 is less by this amount..?

 

- However, to avoid delay in IT Filing, I have already filed return without reduction in my CTC. If I am eligible for reducing this from Taxable Salary, then can I file a Revised IT Return to claim the refund..? 

 

 Thanks & Regards,

 

N Srinivas

 

Replies (3)
Hi, you cannot claim such payment as a deduction from taxable income, since it is not in the nature of salary. The payment that you have made is a result of the terms of employment. No provision in Income Tax Act provides for such deduction
No, u can't claim it as a deduction.
NO SUCH DEDUCTION UNDER THE INCOME-TAX ACT, 1961

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