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.
CAclubindia
