TDS on salary paid to employee for notice period

Can Employer claim as expense, salary  paid to employee during his notice period & is employer liable to deduct TDS on this salary? 

Replies (5)

Yes why not.

employer can deduct tds and is allowable as exp.

 

under which Section or basis of any  'Case Decision'

In advance

Thank you

Already you may received some reply for this.  Any salary paid at the time of employment or at the time of notiece period the employer can claim them as an expenses. There is not doubt in this regard.

The Employer can deduct TDS in this regard also.

1. Sec 15 defines salary as any salary due9 from an employer or a former employer to an assessee in the previous year, whether paid9 or not;

There is no qualification which excludes notice period salary from the definition

2. Salary during the notice period is taxable under the head salary- this means employer must deduct TDS and claim deduction as business expenditure (wholly exclusive for business purpose); nothing exempts salary recd during notice period

3. Notice period is just an internal arrangement - there can be cases where there is no notice period; it is just to enable the company to arrange for alternate resource in place of the one leaving

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