Doubt in head 'salary'.. experts please help!!

Dear All,

If any employee has to leave his current employment and there is notice period of 3 months. As per the terms of employment, if he contravenes the notice period then he has to pay salary of 3 months.... Now, as we know the FORM - 16 is given by the Employer, so we cannot override the same since its the only document of proof of Employment for the relevant period.

Now, my doubt is whether the We can claim it as deduction in that year (despite of the fact it being breach of contract).?? Please support the same by valid reason or any court or tribunal decision??

 

Regards,

 

Replies (2)

Salary paid by the outgoing employee to the employer company for compliance of TCs of the employment contract in lieu of notice period is not available as a deduction under the head salaries or any other head of income in the hands of the employee.

Regards,

Hi, since it is one sort of recovery from employee for contravening employment terms, it can not be set off against income accrued. Sine it is in form recovery post accrual adjustment in form 16 also can not be made moreover TDS has to be deducted for served notice period.

Thanks!!

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details