SHASHANK SHEKHAR DASH (Banker) 11 August 2013

Notice period recovery

Sir,

How should notice perriod recovery be treated in Form No 16. The employer has recovered 30 days salary.

My contention is that since earning has not been passed to the employee, the same should not be part of gross earning. It is not fair to pay income tax on some amount which you have not earned. Please cite case laws. In case the amount is shown in assessable income, can one claim any benefit/ relaxation for this THIS NOTICE PERIOD RECOVERY AMOUNT at the time of filing IT return.

Regds

Shashank

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2 Replies

Kuummaar AS (........................) 12 August 2013

Go to link

https://www.caclubindia.com/experts/notice-period-recovery-by-employer-and-form-16-treatment-426420.asp

Vallabh Parmar (Advocate) 16 August 2013

Please note that your salary is paid as TDS by retaining the same on government behalf and same is deposited in government account and employer issues you a TDS certificate FORM No 16 which you can claim as tax paid and if such amount is paid in excess then what tax is due then you can claim Refund in your Return of Income .