Loss due to paying back to employer

Tax queries 156 views 1 replies

Hello Everyone, 

In 2016 my MNC employer transferred me overseas from India for a duration of 3 years. While transferring I was paid some bonus of 15 lakh INR as an agreement that I should join them back after my assignment. It was paid as part of my salary and tax was deducted at source. So I got around 10lakh. But as per agreement I am suppose to return 15 lakhs if I don't join them back. I am ready to pay them back but can I reclaim the earlier tax paid from government? If I pay this 15 lakh to my employer, will it be treated as loss for me and will it be eligible for tax exemption? As I am already paying taxes on my salary. This becomes a double burden. How does this work? Please help me. How could I sign this type of agreement is another story. I don't want to fight with my employer and I have my own reasons for not joining them back.

Replies (1)

Consult any professional with the agreement copy....... If it was advance deductible against future salary ........ or any reversible clause protecting employee, you can demand or adjust against future payments. But otherwise chances are bleak.


CCI Pro

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