Hi Experts,
I was employed with an organization for 37 days, after which I resigned.
My notice period was 2 months. Since I resigned shortly after joining and did not serve the notice period, my employer deducted one month's salary from my full and final settlement.
Despite this, my employer issued Form 16 showing my gross salary as the salary for the entire 37 days, without reducing the amount recovered towards the notice period. As a result, the notice period recovery has effectively been treated as taxable salary.
I requested my employer to issue a revised Form 16 showing only the net salary earned for 7 days as my gross income, but they refused.
Can I reduce the amount recovered towards the notice period from my gross salary while filing my ITR, even if Form 16 shows the higher amount.?
If not, is there any other provision through which I can claim relief or adjust the notice pay recovery so that I am taxed only on the salary I actually received?
CAclubindia
