Tax relief

This query is : Resolved

Prahlad Pachisia (Querist)
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20 January 2015 Mr A joined an organization X & Co. in the month of July 2012 (FY 2012-13)where he received a joining bonus of Rs. 1 Lac after deduction of Income Tax @ 30% ie Rs. 70000.00.
In form 16 issued for the FY 2012-13 by X & Co. to employee, income under the head Income from Salary & Bonus includes the above joining bonus of Rs. 1,00,000.00 & TDS thereon.
But in the month of July 2013 (FY 2013-14)Mr. A left the X & Co. & joined another Company say Y&Co..
X & Co. while settling full & final account on leaving service recovered the entire amount of joining bonus of Rs. 1,00,000.00 in July 2013 citing company rules.
The issues related are:
• The X & Co. refused to show the amount of joining bonus recovered by X & Co. as deduction from Salary paid during April 2013 to June 2013 against Income under the head Income from Salary ..
• Whether non-inclusion of recovery of joining bonus by X & Co in the Form 16 for F Y 2013-14 paid in earlier year from the aggregate salary paid during April//-/july 2013 is proper or not. In the eye of law. As X & Co refused to show in the Form 16
• Can Mr A claim refund of joining bonus recovered by erstwhile company X & Co. & paid by Mr A in the year 2013-14 by deducting the said amount of joining bonus from the aggregate salary received from X & Co.&, Y & Co. though form 16 issued by X & Co does not include joining bonus returned to the company.
Your advice is solicited to obtain relief of tax on income earned & taxed in F Y 2012-13 but the same income was returned to X & Co in F Y 2013.-14