Income Tax rules applicable to Payment of salary amount to Employer in lieu of waiver of Notice Period for Voluntary Retirement

I have recently taken voluntary retirement from a Public Sector Bank. I have paid an amount of Rs.1,06,477.00 to the bank in lieu of waiver of a part of the applicabe Notice Period of 90 days.I wish to know whether any relief can be claimed by me in respect the above amount while computing the Income Tax on Salary and other incomes for the FY 2011-12.

asked Mar 30 '12 at 13:07 by MJTHOMAS 111

Payment due to shortfall in serving notice period is an expense and deduction is not available for it.

Its a penalty imposed by the employer for not serving notice period. In Income tax no exemption or deduction is allowed for penalty.

answered Mar 30 '12 at 20:16 by Pankaj Batra 5.2k320


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Asked: Mar 30 '12 at 13:07

Seen: 1,597 times

Last updated: Mar 30 '12 at 20:16