Amt compensated by my 2nd employer for 1/2 of notic pd amount paid by me to1st emplyer is taxable wageor not?

Question

When i resigned from one organisation i paid three month notice period pay, but half of this amount was compensated by 2nd employer and shown it as wages and levied tax on it. is it correct or this amount is to be excluded as notice period wages have already been taxed.

Answer 1

Yes it will be taxable. But your icome from previous employer will be reduced by him in the Form 16 by 3 months. Your Form 16 from 2nd Employer will include the reimbursement amount.

It is in your benifit to include both of them, it will reduce your tax liability

Answer 2

First employer will deduct 3-months pay and 2nd employer will report what ever they paid you.

Forum on India Taxes

http://www.mytaxes.in