Confused About Gross Salary After Notice Period Deduction and Reimbursement? Let's Clarify!

We processed FNF in June, where we deducted Rs. 9230/- towards the Notice Period. Subsequently, we decided to reimburse Rs. 4500/- from the deducted Notice Period amount. We have issued Form 16, showing a gross salary of Rs. 15824/-. However, the employee requests a Form 16 reflecting a gross salary of Rs. 20324/-.

What is the correct gross salary?

Please let us know along with the section, if there is one, so that we can reply to him.

Understanding Monthly Gross Salary and Deductions

Monthly gross salary and deductions are two different things. Monthly gross salary is calculated without deducting anything and is considered a notional salary. Deductions, on the other hand, may occur for various reasons and are based on actual amounts.

In this case, the monthly gross salary should be considered prior to the deduction of any amount for any reason.

Please calculate accordingly.

Regards,
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
www.usdhrs.in

Is reimbursement part of the salary or an additional payment?

Is the reimbursement a part of the salary or an additional extra payment for the reimbursement of expenses?

If it is a part of the salary, then it is already included in the gross. If it is expense reimbursement, then it will not come in Form 16 anyway.

Besides, if the former employee is filing tax returns, he can always show the additional earnings in his return even if it is not in Form 16. I think he is basically trying to use it to justify a higher salary told to some other employer.