Money received in this FY but will be taken back in next FY

Ram K (NA) (216 Points)

16 April 2024  

Dear Sir/Madam,

I have a situation.

I joined a company in Dec-23 and will be leaving it in July-24. The company gave me Rs 1 lac joining incentive but said that it will be taken back if I leave within an year, which is the case.

Now in Jan-24 salary that 1 lac is included and it will reflect in my form 16 for 23-24. But in July-24 it will get debited (i.e. they will recover from me) and final settlement will have less salary.

From Income tax point of view how do you handle such a case where money was received in one FY and taken back again in next FY. It’s already recorded in FY 23-24 Form 16 for which I will end up paying taxes!!

Thanks.