IT Deducted by comany in adavance for notice period

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  1. ajaygarg1095

    ajaygarg1095 New Member

    I have been asked by management to resign i resigned with a notice of 3 months on dated 16th March,2016 and i was asked to hand over the company assets like laptop,mobile etc and you will get your salary for 3 months.

    First I received a mail from HR that you will get your full and fianl settlemet within 10th April 2016 but on 08 th april 2016 one more mail from HR They will make me payment monthly basis i.e in April,May June 2016 subject to non joining any competition till june 2016 i agreed.

    I committed they paid my March 2016 Salary on April 11th,2016, April 2016 salary INR 85000 recived in May first week 2016, May and 16 days of june salary full and final settlement and i received on 56000.00 INR.

    EL Money intentionally or unintentionally not paid they will make a payment in July 2010 may be around 50,000-51000

    I have seen they have deducted my Income tax Rs 90,000.00 which should be actually less than 20,000 that too for the month of March last FY Income.

    The Money 85,000X2.5=2,12,500.00 is a income for cur current FY
    My Question is how can company can deduct Income tax for which they made a payment to me for april,may,june month wise and after April 2016 and most interesting thing is that in salary slip they are showing full and final settlement in March Bank record shows transfer of money in may june.

    In Form 16 they are showing comeplete tax for nest 2and half months income as well.

    Kindly suggest

    Thanks and regards
    Ajay garg
  2. ZED

    ZED Well-Known Member

    As per S.15 ,income under the head salary is taxable on accrual basis and not on receipt basis. As you mentioned that in the salary slips they have shown full settlement in the month of March , it means that your salary accrued in the month of March. The payment has been made in installments.

    S.15. The following income shall be chargeable to income-tax under the head "Salaries"—

    (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;
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