Tax Treatment of conditional compensation like Joining bonus which is returned to employer

Amit4u 1
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Hi Pankaj, My previous employer paid me Joining bonus in the month of Aug-12 and I left organization in the month of June-13 after repaying Joining bonus.Previous employer is refusing to modify Form 16 for reduction in taxable income. Please let me know whether I should file reduced taxable income for FY12-13 or FY13-14. Regards, Amit

joining-bonus-return notice-period taxable-income income-tax
1 Answers

Payment due to shortfall in serving company policies is an expense and deduction is not available for it.

Its a penalty imposed by the employer for not serving bond. In Income tax no exemption or deduction is allowed for penalty.

Pankaj Batra5212
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