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Salary Deducted For Not Serving Notice Period Taxable? Good News For You
Employee salary for not serving out notice period not taxable income A tribunal recently ruled in favour of assessee in one such case Typically, salary is deducted when employees exit without serving notice
08 May 2017, 08:04 AM IST 
Income tax authorities tend to tax the entire salary due, whether paid or not. (Representational image)
In a significant ruling, the Ahmedabad bench of Income Tax Appellate Tribunal or ITAT recently ruled that an amount deducted from an employee's salary for not serving out a notice period cannot be considered as taxable income. "...in our considered view, the actual salary received by the assessee is only taxable and therefore, we allow this ground of appeal of the assessee," the bench said last month. In other words, this means that ...
