Income taken back

Dear friends

 

When I joined a company in 2021 i was given a joining bonus of 1 lakh after deducting TDS which was reflected in my form 16 back then.

In 2022 i left the company, so the company asked me to pay them back the bonus which i did by transferring the amount to their bank account.

This refund is not shown in form 16 of 2022.

My question is 

I paid tax on bonus in 2021 which i have returned in 2022, am i entitled to any benefit in 2022.

can i reduce my income of 2022 by 1 lakh for the bonus which i returned.

what about the tax on bonus i paid which i never really benefited from as i had to return it back.

 

please advice

kindly support your reply with relevant section, rule, circular, judgement etc.

thanks

 

Replies (1)
Hi Gaganjit.

One such case was filed with the Income-tax appealte tribunal - S.S.N. Ravi, Chennai vs Assessee on 6th May 2016 I.T.A. No. 933/Mds/2015 for A.Y 2008-09.

Key Takeaways from this case:

Sign-on bonus refunded to the previous employer can not be reduced from taxable salary.

Refund for TDS deducted by the previous employer at the time of returning the sign-on bonus can not be claimed.

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