Salary query

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This discussion addresses whether an employee can claim a deduction for a bond amount paid by their employer. Unfortunately, there is no provision in the Income Tax Act for such a deduction. The recommended approach is to have the employer reflect a lower salary on Form 16, thereby reducing the TDS liability on the bond amount.

urvesh panchal

urvesh panchal (Querist)
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14 August 2020 Tax treatment of bond amount paid by employer to employee My client paid bond amount to employer Rs 300000 now he want to claim such Rs 300000 as deduction from salary can he do so if yes please send me judgement and also mention legal case of the same so I can understand properly

CA KARAN SINGH

CA KARAN SINGH (Expert)
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15 August 2020 There is no deduction available under the Income Tax Act.
The only thing he can do is, ask their employer to show less salary paid in Form 16 by Rs. 300000. So that TDS will not be deducted on Rs. 300000