banner_ad

Notice period recovery amount

Others 499 views 3 replies

My issues something similar to https://www.financialexpress.com/money/now-you-dont-need-to-pay-income-tax-on-notice-period-pay-cut/644193/

I had left my company 1 and joined company 2. Company did a final settlement where tax is calculated on the salary pending for me. The tax was calculated against the entire "pending salary". However, while calculating net salary company deducted an amount under the heading "Notice Pay Recovery". This means tax on my salary is calculated without deduction of heading "Notice Pay Recovery". As per company there is no such heading/provision in the income tax

I would like to know if i can claim income tax refund. If yes, then how this can be done online

 

Replies (3)
Salary is taxable on due basis. There is no specific provision under the Act under which a deduction can be claimed for such notice pay recovery.
You have consider Form 16 alongwith annexure as Salary Income (without considering notice pay recovery)

Thanks... Were you able to check on the link https://www.financialexpress.com/money/now-you-dont-need-to-pay-income-tax-on-notice-period-pay-cut/644193/  It seems ITAT Ahmedabad had a different observation...

There is one more ITAT decision which is unfavor able to assessee
If salary &TDS are not as per Form 16 and 26AS then surely notice from Itax. In the absence of specific provision , it won't be allowed in normal course.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details