TDS-full and final settlement

[baisakhi baid]

Dear members   Please address my following query: We had an employee whose full and final settlement is being finalized. We had deducted 3 month salary as notice pay deduction as that employee did not give any prior notice as required for 3 month under terms of appointment letter In computing final TDS on salary of that employee, whether such notice pay deduction  is allowable from his salary income under income tax for TDS PURPOSE Regards   Baisakhi Baid

[Asit Kumar Mondal]

To CA Baisakhi Baid

 
Yes In computing final TDS on salary of that employee,  such notice pay deduction  is allowable from his salary income under income tax for TDS PURPOSE
 
Regards
 
CA Asit Kr Mondal
Anand-Gujarat

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[dalam chand bhandari]

Under Income Tax Act, 1961, an assessee cannot claim deduction in respect of 'notice pay' because of absence any such specific provision w.r.t. the same. Therefore, the question of allowing deduction of 'notice pay' while determining the TDS liability doesn't arise at all i.e. 'notice pay' will not be deducted  while determining the TDS liability.

Bharat

98310-71741

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From: Asit Kumar Mondal <ak.m...@amul.coop>
To: foru...@googlegroups.com
Cc: google group <foru...@googlegroups.com>
Sent: Friday, June 22, 2012 11:43 AM
Subject: Re: [CA RUNGTA P D] TDS-full and final settlement