Is Notice Period Buyout Reimbursement Taxable for Employees? Seeking Advice

Hello Friends,

Could you please inform me about the treatment for reimbursement done to an employee towards the buyout of the notice period from his previous employer?

Recently, we reimbursed one of our employees for the buyout of the notice period from his previous employer.

Will this reimbursement be taxable in the hands of the employee?

Thank you very much in advance for your kind assistance.

Any amount paid to an employee will be taxable in the hands of the employee. I am not confident about the treatment of this expenditure. If he had paid notice pay to the employer, that would certainly be an expenditure for him as an individual, a salaried person.

Regards,
Madhu.T.K