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Bonus Repaid to Company - Form 16 not Revised

Sri Ranjini Venkatachalapathy (CA) (55 Points)

11 August 2021

Hello all,
Good day.
My Employer paid me a Bonus of Rs.2,00,000/- after deducting 1,00,000/ as TDS on Dec,2020.
I left the Job on March, 2021 and I repaid the whole amount of Rs.3,00,000/-.
My Form 16 only reflects the amount I received
I am unable to manually change in my Income Tax Return while filing for this year and my employer refused to modify my Form 16 to update the same.
I am unable to claim my TDS for the Bonus.
Could anyone kindly help me out.

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14 Replies

CA Raj Doshi (Practising CA) (8799 Points)
Replied 11 August 2021

I suggest you to send a legal notice through a lawyer. There already has been denial so this is the way out. This will also be of help if at all income tax department selects your case for scrutiny.

1 Like

Samantha J (1236 Points)
Replied 11 August 2021

Use form 16 to claim TDS of Rs1L . Form 26AS will show Rs 1L TDS.Use form 26AS details to claim TDS!

1 Like

Sri Ranjini Venkatachalapathy (CA) (55 Points)
Replied 11 August 2021

Thanks Raj C Doshi I will try to send a legal notice.. Thanks Samantha for your reply.. However as per Form 16, Amount paid to me only reflects, Amount paid by me does not reflect. so, Could you kindly let me know how can I claim refund using Form 26AS..

Samantha J (1236 Points)
Replied 11 August 2021

While filling Returns use Form 16 details for income etc.Download Form 26AS from filing portal.Tally amount s and you will see TDS amount.Cross verify the total TDS which will show Rs 1 L more deduction against total income paid by TAN of your employer.Use TAN , employer name and TDS of Rs1L when you fill the TDS schedule for refund!
Notice to employer not required!

1 Like

Sri Ranjini Venkatachalapathy (CA) (55 Points)
Replied 11 August 2021

Thank you .. I will try filing it accordingly..

Mahesh Balanthimugaru (Article Assistant) (85 Points)
Replied 11 August 2021

In Income tax web portal, it is not necessary to enter the salary details as per Form 16. So, while e-filing, enter the correct salary details after considering the bonus repaid. While reporting TDS, ensure it is as per Form 26AS and file ITR. refund will be credited!

Samantha J (1236 Points)
Replied 11 August 2021

Mahesh learn mathematics! Your method will offer wrong income offered to claim TDS refund making way for Notice from department!

Mahesh Balanthimugaru (Article Assistant) (85 Points)
Replied 11 August 2021

Actual income is less than what is there in Form 16?

Samantha J (1236 Points)
Replied 11 August 2021

Enroll in class 10 in online BYJU class to learn mathematics!

CA Raj Doshi (Practising CA) (8799 Points)
Replied 11 August 2021

Summary as below - 26AS shows bonus as 3 lakhs and tds 1 lakh. Since the bonus is repaid in toto, employer should revise tds return and remove the bonus as well as tds amount.

It will make no sense if form 16 part B does not consider bonus but form 16 part considers bonus.

Your IT return will definitely go defective in case employer doesn't amend the details.

There is a way out but it involves studying your form 16 and form 26AS for the full year and then convincing your employer's CA.

and finally sending a legal notice if nothing works.

Sri Ranjini Venkatachalapathy (CA) (55 Points)
Replied 14 August 2021

Hello Samantha, As per my Form 26AS the employer shows that that the salary paid to me including the bonus amount, the refund is not shown..
Thanks Raj, I tried contacting my employer they are replying stating that the F&F will be enough to claim refund

Samantha J (1236 Points)
Replied 14 August 2021

Form 26AS will show "Income " and corresponding TDS . You must claim TDS Rs 1 L by filling TDS schedule by entering TAN of employer which is available in 26AS. Y
The employer issues just FORM 16 and since TDS has been deducted , it might have been remitted to Tax department aslo . The employer these days don't help employees and so they will never revise their monthly or quarterly or yearly returns!
We live in a world where"fair is foul and foul is fair" and the contravenors have a majority !

Manohar Sankuri (2 Points)
Replied 04 July 2023

Sri Ranjini Venkatachalapathy

Is there a update on your final IT returns? I am facing similar issue for 2023-24 income tax return. so wanted to check how did you finally filed your returns.