Notice period salary deduction

On strict reading of law company will have to deduct TDS on entire salary and nothing can be done there. But when you file your return of income you can show it as deduction from your salary and there are various ruling which will support your contention that no tax needs to be paid on amount deducted as notice pay.

Hence the company won't help you, you'll have to adjust the same while filing your return of income.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

- No need to worry. You can show the deduction in the ITR and claim the refund/adjustment of excess TDS if any.

Dear Sir,

Hope you are doing well !!

You can claim the refund while filing ITR.

We may assist you in ITR filing.

Hello,

You can claim the excess TDS deducted on the notice period pay while filing your return.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Dear Sir

in ur case u can claim deduction of notice pay amount & there are various case laws for the same.

if ur employer didn’t mention that amt in form 16 then while ur ITR u can show it as deduction & can claim the excess TDS deducted.

we can help you in filling ur ITR.

Please rate 5 & provide valuable feedback so that I can improve my answers in future

Dear Sir,

Here is my reply to your query:

As per the details provided by you:

There is a difference between the Total Amount of Salary as per the Payslips and the amount shown in F&F Settlement and Form 16. 

I suggest you to please follow up the matter with the Old Company because if they issue the Form 16 without showing the deduction relating to Notice Pay then you have to pay the income tax on the same while filing the income tax return.

In case they will not reduce the amount from the full and final settlement sheet then ask them to pay the amount return therein as you have a right to receive the amount mentioned in the final settlement statement.

Let me know if you have any query regarding the same!

Stay Home Stay Safe!

Thanks and Regards 

Divya Chugh 

Hello Sir,

You can claim the excess tds deducted while filing ITR.

Unfortunately, there is no resolution in such cases. You will have to bear the brunt of taxes on your notice pay amount as well.