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

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

asked Jul 27 '13 at 11:52 by Amit4u 111

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.

answered Jul 27 '13 at 21:37 by Pankaj Batra 5.2k320


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Asked: Jul 27 '13 at 11:52

Seen: 2,319 times

Last updated: Jul 27 '13 at 21:37