Sir I have worked with Mahindra & Mahindra April 2019 to June 2019 and shifted to escorts ltd since July 2019. I have paid notice pay to Mahindra for 1.58lac and same I have claimed from escorts they given me in salary under head as notice pay and tax was deducted. Can I claim back in ITR. As I have paid 1.58lac to Mahindra which was notice pay recovery and same escorts reimbursed me but was done in salary and taken under salary in form16. But salary slip mentioned as notice pay. Pls help on clarification.
There is no direct method of doing that as escort would show it as your income but mahindra won't show it as your expense.
So you have to plan your ITR accordingly.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
- notice pay reimbursement will be taxable under the head salary and tax is payable accordingly. If you have served the full notice period that period salary is taxable. In same manner, reimbursement is taxable.
Hi
Reimbursement for notice pay shall be taxable in your hands. You wont be able to claim deduction of the same as it would create a mismatch between the income reported in ITR and income reflected in 26AS statement.
Hi
It will be taxable under the head of salary.
We can assist in filling.
Mahindra would have deducted the amount from your salary and net salary would be coming in Form 16 for Mahindra. The amount of TDS deducted by escorts can be claimed in ITR.
Hello,
Such reimbursement of notice pay amount would be taxable for you.
Regards,
CA Hunny Badlani
Notice pay offten creates dispute if shown Form -16 as salary & you deduct it then there is chance of reopen of casse u/s 147 so practical advice if tax amount is not much then not claim deduction
Dear Sir,
Hope you are doing well !!
It will be taxable under the head salary.
You wont be able to claim deduction of the same.
