Double tax on bonus amount received from company

This query is : Resolved

Basant Dwivedi (Querist)
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03 February 2026 I had received a joining bonus of ₹50,000 in FY 2025–26, on which I had already paid income tax in the same financial year.

In FY 2026–27, I left the organization before completing one year, due to which the company recovered the joining bonus amount of ₹50,000 from my salary in May 2026. After this recovery, I received a net salary of only ₹2,788 for the month of May 2026.

However, in my Form 26AS, the salary for May 2026 is reflected as the full gross salary amount, instead of the net amount actually received by me. Because of this, the recovered ₹50,000 is again getting included in my taxable income for FY 2026–27.

Since the joining bonus was already taxed in FY 2025–26 and the same amount has now been recovered from me in FY 2026–27, this appears to result in double taxation of the same ₹50,000.

I would like to understand whether there is any provision or method to reflect this recovery adjustment correctly while filing my ITR for AY 2027–28, so that the same income is not taxed twice. Need your help and suggestion.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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04 February 2026 Yes, you can and should adjust the recovered ₹50,000 while filing ITR for AY 2027-28.
The amount must not be taxed again, despite appearing in Form 26AS.
Income tax is chargeable on real income, not notional income.

Once an amount is recovered back by the employer, it ceases to be income of the employee in that year.

Tax law does not intend to tax the same income twice, merely because of reporting mechanics in Form 26AS.

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