No income tax on salary deducted if notice period not served

Portions of salary which were deducted by a company for not serving out a notice period will not be brought to tax.

New Delhi: If you have not served notice period as mandated by your company and your employer has deducted salary for the same, then it cannot be brought to tax, as per a newspaper report.

A report in the Economic Times quoting an Ahmedabad Income Tax Appellate Tribunal (ITAT) ruling said that employee was not required to pay tax on salary deducted by employer for not serving notice period.

“...ITAT (Ahmedabad bench) in its order dated April 18, said only salary received would be taxable, and not portions which were deducted by a company for not serving out a notice period,” the ET said.