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Refund of incentive

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CMA. Murali (Querist)
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05 January 2012 Hi Friends,

I have received incentive from my company and paid tax for it already. I am planning to quit the company and as per policy i have to repay the incentive. Now the question is will the incentive be deducted from my Gross salary income for tax computation.

My feeling is i am entitled for deduction while computation of Tax...

Please let me know your opinion.

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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05 January 2012 What ever the income, you get in this year is only taxable for this year, If you have paid back the incentive which you have received during the year, that is not taxable cause you have not earned that in this year.
I hope this clarifies your doubt.

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CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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06 January 2012 instead of refunding incentive get your salary forfeited for same amount

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