| Question And Answer | |
|---|---|
| Subject: | Notice Period Recovery is taxable or not |
| Category: | Income-Tax |
| Querist: | deepa kumari |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Notice period, Notice Period recovery, Recovery, salary |
| Date: | September 7, 2022 |
I left my organization Saxo Bank, Gurgaon, Haryana back in June 2021, and they deducted 1.9 L as Notice Period recovery and settled everything in Full and Final Settlement in which I paid them the left over recovery amount. Last month’s salary was not paid, and while I was serving the Notice Period, I paid them the projected Notice Period recovery.
In the final F-16 I recieved from them they’ve kept the whole 1.9L as a taxable income, I asked them to correct it. And they asked me to claim it in ITR.
When I claim it in the ITR, I get a defective Notice from IT Dept.
I have been in contact with Saxo since today morning and they’re saying that it should be taxable, and that the F-16 is correct. I cited the recent ruling of HC Ahmedabad where they mentioned that the actual salary paid can only be taxable. They’re saying that you cannot cite something that happened in Ahmedabad here in Delhi NCR.
I have been haggling with them for over an year now, please suggest the options I have. The legal proceedings are so long here in India, that one might even keep waiting for so long you never know.
This being an issue which requires explanation and application of mind of the Departmental Officer, the same will have to be adjudicated by the Ld. Assessing Officer. There can be no way to bypass the due process of law.