The Ahmedabad bench of Income Tax Appellate Tribunal has recently held that since an employee receives salary after deduction of notice period pay, only actual salary received is taxable
Suraj Nangia, Partner contributed an article on NO TAX ON NOTICE PERIOD PAY CUT for Financial Express
Reference Link http://www.financialexpress.com/money/income-tax-returns-good-news-no-tax-on-notice-period-pay-cut/664668/