Salary surrendered in lieu of notice period

Nawal Kishore Malhotra (3 Points)

16 July 2018  
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 @