I have an legal agreement with my company where company spent around 5 lakh for my higher studies. now due to some medical problem i am leaving the organization and i have to pay 5 lakh back to the company.
Will i get any tax exemption as i am already paying tax as per my current slab but now i will be in Rs 5 lakh loss as payment towards legal agreement.
22 November 2017
unfortunately for salary there is no provision of deductions other than what is specified.
in this case, please check if the amount of 5 lacs spent was considered as your perquisite in the year of spending. what you may be able to do. is revise the return for that year.
however, this will result in a scrutiny.
alternatively you may attempt to show your salary lower by the amount by stating diversion by overriding title. eithee way it will be subject to. scrutiny and no AO. woll allow this deduction. your best chance will lie in appeals ans that too at tribunal level
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