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ABC   29 June 2016

Notice period salary recovered not adjusted in form 16.

Hi Team,

It would be kind on if you please suggest on below matter:

Employer have recovered notice period salarydue to shortfall in notice period but in form 16 does not adjust amount.

It has now fallen as income to me in form 16. for which my tax liability will increase drastically.

What should i do in this case, empoyer not adjusting it in form 16.

In Full and final settlement recovery shown as negative amount, and in form 16 whole amount put as income. Nothing credit transaction to my account.

Thanks and Regards

 

 

 

 

 



 7 Replies

JustAdvisor (IT)     29 June 2016

as i understand he has already paid tds on your behalf and now you have returned him notice period salary. talk to your CA - i think you may get refund from the IT department.

Kumar Doab (FIN)     29 June 2016

You have posted that:

 

"Employer have recovered notice period salarydue to shortfall in notice period but in form 16 does not adjust amount.'

 

"In Full and final settlement recovery shown as negative amount, 

and in form 16 whole amount put as income. '

 

You may write to say Head-Finance that has signed on Form16 and HR personnel that has signed on FnF statement with a copy to appointing authority,MD..................and request them to revise their own return and issue correct Form16....................

 

Is your next employer buying out notice period?

 

 

There are many threads at LCI on similar query e.g;

 

https://www.lawyersclubindia.com/forum/Tax-exemption-on-notice-pay-49561.asp

 

 

 

 

 

ABC   29 June 2016

First of all thanks you very much for your prompt response. Few considerations which will help you to pay better.

1) New employer haven't done any buyout or any kind of joining bonus to me.

2) Company have paid 18 days salary in f&F and shown in earnings side,  and recovered 1 month salary( in recovery side)  and shows some amount in negative F&F which i need to pay according to them.

Form 16  shows 1 month 18 days salary as my income. Although paid in salary account only 1 month rest is recovered in F&F.

3) Yes correct, company has submitted TDS as same amount( 1 month 18 days) resemble in 26as.

4) I have written to them several times but no positive response they are demanding negative balance from me.

 

Should i file return for whole income ( 1 month 18 days) ..and get it refund later if there is any provision or donot show 18 days salary which is recoverd.

Your help will be much appreciated.

Thanks and Regards

 

 

Kumar Doab (FIN)     29 June 2016

Let us assume that:

 

----June 16 is your last month.

----and May16 salary has been paid by say 31st May/7th June16, and it was not withheld due to resignation and was to be paid in FnF.

----and you have worked upto 18th June,2016.

----and 18 days salary of June 16 is computed in FnF statement.

 

If such be the situation then company shall not compute 1 month 18 days salary in FnF.

 

Isn't it?

 

Has the company supplied last month ( say June16)  and ( last tom last month say May16) salary slips and From16?

A comprhensive discussion with citations, is available at the above mentioned thread i.e.:

 

There are many threads at LCI on similar query e.g;

 

https://www.lawyersclubindia.com/forum/Tax-exemption-on-notice-pay-49561.asp

 

You may show everything to your counsel, ITax lawyer or CA and if the stand of company is wrong then issue a notice to the MD, Head-Finance that has signed on Form16 and HR personnel that has signed on FnF statement...............................

 

Your counsel may also opine to complain to IT-TDS where you file ITR and jurisdictional CIT-TDS where company files ITR.

 

 

 

 

ABC   29 June 2016

June 16 is your last month.

----and May16 salary has been paid by say 31st May/7th June16, and it was not withheld due to resignation and was to be paid in FnF.

----and you have worked upto 18th June,2016.

----and 18 days salary of June 16 is computed in FnF statement.

this assumption is correct.

1) may salary paid in account.- salary slip generated.

2) June 18 salary shown in f&f as earning for 18 days  and recovered 30 days salary in recovery section.

3) in second page f&f calculation of gross income for full 1 month 18 days shown with tax calculation which is being paid. No salary slip is being generated in separate all payment is in earning side of F&F which of  18 days.

F&F Format page 1

earnings 18 days amount

Recovery 30 days amount

Balance recovery : Negative amount.

form 16 : 1 month 18 days gross amount and then tax computed based on deductions.

Thank u again for your valuable time. thanks a lot

What should i fill in return....please suggest will consider CA some says u need to pay tax , some says if there is recovery at time u can show them proofs.

Thanks And Regards

 

 

 

 

Kumar Doab (FIN)     29 June 2016

Apparently the company is neither accepting notice pay as penalty, nor income for them, and not sure has posted this collection of amount under which head in its internal records.

You have been unable to extarct a written reply and explanation from company.

In current and other thread suggested to you it has already been posted that you may obtain a written reply.

If you are unable to do so, lean on your able counsel and IT authorities.

 

Rest is upto you.

 

 

 

 

JustAdvisor (IT)     29 June 2016

from what i understood, let us say you didn't give any notice and LWD was 18th June. So in FnF company has credited 18 days and are demanding 1 month notice pay. so far the story fits. but how come company has paid tds for 1m18d? i think it is a clerical error as it is 18d - 1m(roughly negative 12 days) and not 18d + 1m. Engage a CA and counsel as advised by learned expert.

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