Notice period salary eligible for deduction?

Others 2789 views 5 replies

Moin.

Manager - Finance & Accounts

102 Points Posted on 07 February 2008

Dear Friends,

I have doubt in calculation of salary income, here I try to explaining with example, please suggest to me for what is the correct method, X is worked in ABC Pvt Ltd for 3 months and he got another better opportunity in XYZ Ltd, he want to leave from ABC Pvt Ltd, he is not fulfilling the HR rules, that’s reason he want pay notice period salary to ABC Pvt Ltd Rs. 50,000 (one month salary), he is paid and joined in XYZ Ltd, Here problem is he can eligible for take deduction of notice period salary from his salary income? (Exp. His salary income from ABC Pvt Ltd is 1,50,000 and he return paid to company Rs. 50,000) How can I calculate his salary income for issuing of Form No.16? Am so confusion in this matter, please provide your advice to kmoindn @ gmail.com

Thanks friend

Replies (5)

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Posted on 07 February 2008

It is necessary to exactly know the wordings of he terms of employment to answer this query.

O.D.SHARMA

DGM-F & A

1734 Points Posted on 07 February 2008

Ask for the Form 16 from old employer. u take that into accpont.

Nagaraju Pogula

Partner

175 Points Posted on 07 February 2008

First of all ask Mr.X to produce the Form 16 from ABC Pvt Ltd for the three months period. In that ABC Pvt Ltd. Can mention only 1 Lac as his salary income as that is what they have ultimately paid to X for three months (1.50L-.50L). You need to include the said 50K as his salary income from XYZ Ltd., as he is paid 50K in addition to his regular salary. It is ultimately like that, his one month salary of ABC Pvt Ltd is XYZ Ltd.