New Delhi, Nov. 9 -- When a salaried employee resigns, retires, or is terminated, their employer calculates and clears all remaining financial dues after the person's last working day. This process is known as full and final settlement or F&F.

The payout typically includes unpaid salary up to the last working day, leave encashment, gratuity (if eligible), bonuses, and provident fund (PF) adjustments, after accounting for deductions like notice period recovery or loans.

However, you do not receive the full amount in your bank account. This is because employers generally deduct TDS (tax deducted at source) under Section 192 on taxable salary components before crediting the net settlement amount.

A full and final settlement in India is no...