Notice period recovery amount not mentioned in form-16


Sumit Karwal   31 August 2019

Sumit Karwal

 3 points

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Hi,

In FY 2018-19, I had worked for a company which I left before serving the complete notice period of 90 days and an amount was deducted from my salary as notice period recovery. As the amount was not paid to me and deducted from my last salary, even then the said company mentioned the whole gross salary in the Form-16 and Form 26AS as well. Here is meant that the notice period recovery amount was not mentioned in the Form-16 and even it was not deducted from the gross salary.
As the company salary was not paid to me for the last month, I believe the notice period recovery amount should not be taxable in my case.
Now as per guidance from my friends and some research, I am thinking to deducting this amount from Gross salary and then file the ITR. I would like to know if this is the correct way to deduct the notice period recovery amount and also that if I deduct this amount from Gross salary in Page 3 of ITR-1, should I go ahead and deduct the same amount for that particular company in Page 4 under Sch TDS -1.

avater

sheela More (student)     31 August 2019

sheela More
student 
 43 likes  263 points

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If you file that way, you will get defective notice. So, better to get form 16 rectified through the employer.

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Sumit Karwal   31 August 2019

Sumit Karwal

 3 points

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Thank you for replying quickly.
I had already asked them to provide me an updated Form-16 but they are not agreeing on that. I have the Full and Final Statement where the notice period amount is mentioned and might be later I can ask the company to provide me the written details on company's letter head.
Most probably, I will get the defective notice but as I am not doing anything unlawful, I can provide the details later.

Right now I am more concerned how to enter all these details.

avater

Kapadia Pravin   31 August 2019

Kapadia Pravin

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Notice period recovery amount is not part of salary. it won't be included in Form 16
And you don't get any Deduction for notice period payment in ITR.
So it's futile to do any exercise by you


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