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anilshukla
31-12-2011, 03:26 PM
Sir,
Some of our staff member, in a Govt. Office, got the enhanced pay due to a court case as a interim order by the court in the Year 2001-2003 Period. Then office got the stay order and after 5-6 Years, this year in the month of January Supreme Court reject the Staff side claim and order for recovery of excess pay paid during the Period 2001-2003. Our office start deduction from affected staff members pay w.e.f. 06/2011 pay in instalments as per court order.
Can we deduct the recovered amount by the office during this FY from our taxable income at the time of calculation of TAX for the year 2011-2012 ? or not? please clarify.

ANIL SHUKLA
E.S.I.Corporation
Delhi Region.

RKPATHAK
01-01-2012, 10:05 AM
As per my knowledge Arrears for last three years qualify for such deduction. However other members may comment to enable me to brush up my knowledge

Victor
01-01-2012, 02:44 PM
Sir,
Some of our staff member, in a Govt. Office, got the enhanced pay due to a court case as a interim order by the court in the Year 2001-2003 Period. Then office got the stay order and after 5-6 Years, this year in the month of January Supreme Court reject the Staff side claim and order for recovery of excess pay paid during the Period 2001-2003. Our office start deduction from affected staff members pay w.e.f. 06/2011 pay in instalments as per court order.
Can we deduct the recovered amount by the office during this FY from our taxable income at the time of calculation of TAX for the year 2011-2012 ? or not? please clarify.

ANIL SHUKLA
E.S.I.Corporation
Delhi Region.

Your salary will get reduced automatically when the recoveries are made. The income tax will be payable on the net salary after deduction of the recoveries.

Victor