- You can deduct the notice pay deduction at the time of filing of ITR.
Leave encashment calculated as income where as notice pay deducted at source-got a negative income
I have resigned from a company. I have served 18 days of notice. I was sortfall of 72 days notice. My leave balance was 67 days. During settlement my previous company added the leave encashment income in total salary in the year.But at the same time they have deucted the notice pay at source. Leave pay-Rs 61500.00 Notice pay Rs 66000.00 But when calculating FY 19-20 earning they added Rs 61500 in total income. Whereas I am earning a negative earning of Rs 4586.63 i the year in this head. So my icome icreased, and so the income tax. But factually I GOT A NEGATIVE INCOME. HOW IT COULD BE TAXABLE?
Asked 4 years ago in Income Tax
It's as per company policy that you had to pay notice pay but same was not deducted from your salary for TDS purpose as same is not present in income tax provisions and hence you'll have to manually show it in your return of income and claim refund.
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Thank you.
It can be claimed as a deduction at the time of filing of ITR.
Regards,
CA Hunny Badlani
At the time of filing return show your salary income net off of notice pay and claim refund of tax if any extra paid
Hi,
You can claim the same as deduction while filing ITR.
We may assist you in ITR filing.
How I can claim, if the deduction amount not shown in form 16 by the employer. Should I make it remember to the employer before publishing Form 16. And how it will reduce the tax amount, as it suited a higher side. They had also not taken consideration the other investments u/s 80C and 80G,
Asked 4 years ago
for form 16 is indicative only.
you can always claim anything whcih is left out in form 16.
Since in the given case employer will not able to put in form 16
For 80C you can insist employer to add in form 16 for 80G its not possible,
It must be claimed seperately
- Show total income as per Form 16 and 26AS in ITR to avoid the mismatch with the Form 26AS. Claim notice pay deduction in deductions as others. You can claim 80C and 80G deductions in ITR. There is no problem if the employer has not shown in Form 16.
You can claim it directly while filing ITR even if it is not mentioned in form 16.
We may assist you in ITR filing.
You can claim it in the ITR even if it is not mentioned in Form 16.
Ask you employer to include deduction u/s. 80C & 80G with proofs. If they don't you can claim them directly in your ITR.
Form 16 is not full and final and that's why we have an option to file our return of income and since you would have the supporting evidence to prove your claim it should not be an issue in future.
If you had provided them with investment declaration form they should accept it. Otherwise you can claim it in your return of income and claim refund.
Hi,
Ideally, your employer should have deducted leaves from your notice period and charge you for the balance buy-out of notice period. In that case, it will mot be taxable.
However, if employer is showing leave encashment speartely and notice period buy-out separately at gross level, then gross leave encashment (after elegible exemption) will be taxed.
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