CA Devender Chauhan (Group Financial Accountant) (1526 Points)
23 July 2011
Did the notice pay recovered from employee for not serving the notice period is deducted from the salary paid to them.
What is the treatment for that while filing tds return of the employee.
I think it should be treated as income of the organisation & it has nothing to do with the salary of the employee, but my seniors are not agree with me. plz explain..............
Mihir
(Wealth Manager)
(5293 Points)
Replied 23 July 2011
What is the nature of this notice pay? Is it deduction made from the salary due to the employee or is it some penalty recovered from the employee?
Ranjan Dayal
(Professional)
(275 Points)
Replied 23 July 2011
Rcovery of Notice pay is the income of organisation and In case of employee salary income will be consider after deducting the same.
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 23 July 2011
| Originally posted by : Mihir | ||
 |
What is the nature of this notice pay? Is it deduction made from the salary due to the employee or is it some penalty recovered from the employee? |
 |
The notice pay is the amount recovered from the employee for not serving the notice period which was agreed at the time of engaging any employee.
Piyush Goel
(Sr. ERP Finance Consultant)
(91 Points)
Replied 03 March 2012
Hello,
If there is only deduction of Notice Pay amount during the Full n Final. should we require to include it in Income while calculating the income for that FY.
Best Regards
Piyush
CA SUMANTH
(LEARNER.....)
(294 Points)
Replied 03 March 2012
Notice Pay will become income to the organisation. But i dont think such amount should be deducted from employees salary for computation. Because he's not returning back salary to the organisation, he's paying off his obligation. Correct me if im wrong.
Piyush Goel
(Sr. ERP Finance Consultant)
(91 Points)
Replied 03 March 2012
Thanks for ur raply.. And, there is no provision in Income Tax Act.. right??
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