Salary deducted by employer in lieu of leaving job early than contracted

Hi,

My last employer stopped my salary for last three months of my job, till March 2011. They deducted income tax though and later in this financial year they deducted 90000 from that amount due to some financial bond I had with them. But my form 16 issued by the employer does not say that. Is it correct on my employer’s part?

Regards, Vishal

asked May 22 '12 at 06:31 by VishalKaushik 111


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

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

answered May 28 '12 at 23:30 by Pankaj Batra 5.2k320

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Asked: May 22 '12 at 06:31

Seen: 1,626 times

Last updated: May 28 '12 at 23:30