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I have changed by company 6 months back. My prev…

I have changed by company 6 months back. My previous company recovered Rs. 2lacs from my full &…

I have changed by company 6 months back. My previous company recovered Rs. 2lacs from my full & final settlement as notice period buyout. Full & final settlement was comprising my gratuity amount & salary of 2 months. They paid me the balance amount (FNF amount - 2L) as settlement. I have received the Form 16 from this company but no where the recovery amount has been mentioned. My current organization paid me 2L as notice period buyout & they have included this entry in Form 16 which is subject to tax. How do I consider the 2L amount out of tax assessment as I have not earned that amount & on the contrary have paid back my previous company while exiting. If this is not considered then I am getting a significantly high tax liability. Also, I have read the latest order by ITAT (Ahmedabad bench) dated 18th April 2017 about no tax on notice period pay cut. Is this order helpful in my case? Please solve my problem.

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Ritesh Mar. 20, 2018

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