Hello, I want to know rules related to Income Tax Calculation:
a) If my previous employer deducted Rs 5000 from my final salary for 5 days less in the 30-day notice period, should he not show this deduction from my gross total income to decrease my tax liability? And my current employer is including Rs 5000 (they paid to me for the notice pay reimbursement) in my gross total income. If the previous employer does not show the deduction and the current employer adds the same, I will be paying tax twice for the notice pay amount - Rs 5000 + Rs 5000. What can be a solution to the same? The previous employer is not ready to subtract from my gross total income, and the current employer is bent on including the amount again because they paid this to me! Can someone quote the correct income tax rule.
b) Leave Encashment received at the time of leaving services of the company is taxable or not taxable if I worked for only 5 months in the previous company. Is there any rule that one has to work for at least 1 year to avail this exemption of no tax on leave encashment received at the time of leaving services of the company?
c) Should the previous employer not show the HRA exemption in the final statement?
From India, Kala Amb
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a) If my previous employer deducted Rs 5000 from my final salary for 5 days less in the 30-day notice period, should he not show this deduction from my gross total income to decrease my tax liability? And my current employer is including Rs 5000 (they paid to me for the notice pay reimbursement) in my gross total income. If the previous employer does not show the deduction and the current employer adds the same, I will be paying tax twice for the notice pay amount - Rs 5000 + Rs 5000. What can be a solution to the same? The previous employer is not ready to subtract from my gross total income, and the current employer is bent on including the amount again because they paid this to me! Can someone quote the correct income tax rule.
b) Leave Encashment received at the time of leaving services of the company is taxable or not taxable if I worked for only 5 months in the previous company. Is there any rule that one has to work for at least 1 year to avail this exemption of no tax on leave encashment received at the time of leaving services of the company?
c) Should the previous employer not show the HRA exemption in the final statement?
From India, Kala Amb
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x