Deduction of Income Tax for reimbursement of Notice Period, Income Tax

[Pradeep Jain]

Querry is that -

Is present employer is liable to deduct TDS on  reimbursement the amount of notice period  to new employee ?. We seek your valuable legal advise,

Thank in advance.

Pradeep Jain

Posts / Replies

[manoj kumar]

As  per section 192,tax is deductible on any amount which is paid by employer to employee by reason of employment.

As Notice Period amount is paid by reason of employment,So Tax at source is deductible from payment to new employee.