Salary surrendered in lieu of notice period

I took voluntary retirement from a public sector bank on 07.04.18. I surrendered three months salary in lieu of notice period on 07.04.18.

Please advise as to how the surrendered amount will be treated in current financial year 2018-19 (AY 2019-20).

TDS on surrendered amount being the salary for the months of Jan to Mar 2018 was deducted in previous FY 2017-18 .

Since its a financial loss in current financial year 2018-19 and TDS was paid on the amount in previous financial year, which was actually not accrued or surrendered subsequently. Please quote relevant instructions with section/sub section of IT Act under which the subject matter will be treated.

Nawal Kishore
email - nawal.malhotra @ gmail.com
Replies (2)

U have to pay tax on salary surrendered.

Sir, TDS on salary earned during the period Jan 18 to Mar 18 has alredy been deducted in previous financial year 2017-18. My question is that "Am I eligible for any exemption under Income Tax Act for the amount of salary surrendered in current financial year 2018-19 in lieu of notice petiod as its a financial loss to me in current financial year 2018-19. Should the said amount be not deducted from my total earnings on account of pension and other superannuaion benefits not exempted from tax? The relevant provision/section of Income Tax Act may please be quoted. Regards

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