How to claim TDS on bonus paid last year(AY20-21 ITR Filed) and bonus was returned in next AY21-22?

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This query is : Resolved

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This discussion addresses how to claim TDS deducted on a joining bonus paid in FY19-20 (AY20-21) when the bonus was subsequently returned in FY20-21 (AY21-22). The user filed their AY20-21 ITR and has zero tax liability for AY21-22. Advice suggests that a refund for the previous year's TDS cannot be claimed directly. Instead, the income should be reduced by the recovery amount in the current year to pay less tax. However, with zero tax liability in AY21-22, adjusting the TDS against gross income offers no benefit, leaving no alternative for claiming the TDS.

Danish M.

Danish M. (Querist)
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01 August 2021 Hi,
I joined a new company in NOV 2019 where I got a joining bonus and paid TDS on that bonus in AY 20-21 / F?Y19-20; ITR also filed.

Please advise how can i claim that TDS paid on bonus (which technically I don't have) and claim of refund or ajustment in current year ITR return AY 21-22?

Thanks,
Danish

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2021 You can't claim refund of TDS last year. This year income reduce to the extent of recovery and pay less tax.

Danish M.

Danish M. (Querist)
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01 August 2021 Thanks for the reply. I forgot to mentioned that i have 0 tax laibality in AY21-22. bonus tds was decuted under 30% slab if we try to adjust it in this year gross income then it wont make help. Please advise further. Thanks a lot!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2021 No other option on case of zero tax liability.

Danish M.

Danish M. (Querist)
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02 August 2021 Thanks for your time and advise.

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