Taxation-notice pay recovery, Income Tax

[Lekh Sood]

I resigned from the company and ₹ 2,00,000 was payable to me on account of salary and leave encashment.The company also deducted ₹ 50,000 as notice pay recovery.The company is deducting TDS on rs. 2 lakhs and not reducing my income to ₹ 1..50 lakhs.Is the stand of the company correct?

I will get ₹ 50,000 from current employer as agreed at the time of joining that any notice pay deducted by the previous company shall be reimbursed by the current employer.Can I request the current employer to not to tax this 50,000 as it has already been taxed for the purpose of TDS.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

I hope that you would have got clarified in the above issue. If not please inform.