Joining bonus on salary

Tax queries 3712 views 1 replies

one of my friend have joined his employment in april 2009 and received a joining bonus of Rs.x, on which the employer has deducted tax @ 20% flat on the amount paid.  As per the employment rules, my friend has to work 2 complete years, to retain the joining bonus.  But in april 2010 he left the employement and paid back the joining bonus to the employer.   He joined a new company.

Now the question is whether, he can reduce the paid back joining bonus from the salary received from 2nd employer for fy 2010-11.

He has still not filed his return of income for FY 2009-10 & FY 2010-11.

or can he claim from salary of 1st employer, fy 2009-10 and file the return with refund of TDS.

Please give your valuable suggestion at the earliest.

regards.

 

 

 

 

Replies (1)

Q 1. one of my friend have joined his employment in april 2009 and received a joining bonus of Rs.x, on which the employer has deducted tax @ 20% flat on the amount paid.  As per the employment rules, my friend has to work 2 complete years, to retain the joining bonus.  But in april 2010 he left the employement and paid back the joining bonus to the employer.   He joined a new company.

Now the question is whether, he can reduce the paid back joining bonus from the salary received from 2nd employer for fy 2010-11.

He has still not filed his return of income for FY 2009-10 & FY 2010-11.

or can he claim from salary of 1st employer, fy 2009-10 and file the return with refund of TDS.

Please give your valuable suggestion at the earliest.

Reply -

Joining bonus was income in the hands of Your friend and Tax deduction was ok.

Fulfilment of two years Job was the condition signed by your friend with the employer is irrelevent. pay back on ground of which is penalty for breach of employment condition and there will be no deduction available for this. Hence on this ground refund will not entertain.


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