|Is the notice pay compensation taxable in the hands of employer? If yes, it would amount to double taxation i.e. once when salary was paid by the employer who had deducted the tax at source under section 192 of the Act, and again when he receives a notice pay compensation from employee?
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|CA. H. N. Motiwalla
|double taxation, salaries, tax deducted at source
Generally, a notice pay compensation is deducted by the employer before releasing any amount of gratuity or any other sum, the employer deduct the tax at source under section 192 of the Act. Hence, there is no double taxation.