Hi All,
I got referral bonus and notice period payment reimbursed by current company which I have paid in my previous company. Whether Income tax will be calculated for these two also?
Kindly let me know and do the needful.
Thanks,
Satyam.
From India, Madras
I got referral bonus and notice period payment reimbursed by current company which I have paid in my previous company. Whether Income tax will be calculated for these two also?
Kindly let me know and do the needful.
Thanks,
Satyam.
From India, Madras
Hi Satyam,
Referral Bonus and notice Period payment will be taxable in the hands of employee. While compiling both employer's income, tax may arise if the current employer have not deducted tax on same.
Notice period recovery made by previous employer is the deduction part, and most of the companies recover it under deduction side. Some companies deduct it from earning side, like an eg: if you have salary 30000 p.m 3 days shortfall then 30000/30*3. So from all components like Basic, HRA , etc will get impact on same. So in this scenario, taxable income decreases. Firstly check on which side they have deducted your notice period shortfall.
Regards
Siji
From India, Mumbai
1Referral Bonus and notice Period payment will be taxable in the hands of employee. While compiling both employer's income, tax may arise if the current employer have not deducted tax on same.
Notice period recovery made by previous employer is the deduction part, and most of the companies recover it under deduction side. Some companies deduct it from earning side, like an eg: if you have salary 30000 p.m 3 days shortfall then 30000/30*3. So from all components like Basic, HRA , etc will get impact on same. So in this scenario, taxable income decreases. Firstly check on which side they have deducted your notice period shortfall.
Regards
Siji
From India, Mumbai
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