Hi
I want to know that NOTICE PERIOD amount paid to Company A to relief early from duty is whether taxable by Company B during rembursement ?. As the person is not getting the money and he/she is justing acting as medium for fund transfer. Please help.
question is not clear.
Hi,
Yes, the 'Reimbursement' by Company B will be taxable (also if Company B directly pays to Company A in the employee's behalf). The serving of Notice Period is a personal/ individual obligation and if any payment is made by an employer (including prospective employer) to discharge any such personal obligation would be treated as 'SALARY' and held taxable.
Cheers
| Originally posted by : CA SACHIN VIJ | ||
 |
question is not clear. |
 |
CCI
Pro
CAclubindia
