Money received in this FY but will be taken back in next FY

Dear Sir/Madam,

I have a situation.

I joined a company in Dec-23 and will be leaving it in July-24. The company gave me Rs 1 lac joining incentive but said that it will be taken back if I leave within an year, which is the case.

Now in Jan-24 salary that 1 lac is included and it will reflect in my form 16 for 23-24. But in July-24 it will get debited (i.e. they will recover from me) and final settlement will have less salary.

From Income tax point of view how do you handle such a case where money was received in one FY and taken back again in next FY. It’s already recorded in FY 23-24 Form 16 for which I will end up paying taxes!!

Thanks.

Replies (4)
Quick Summary
An employee received a joining incentive in their FY23-24 salary, which has already been taxed. However, they will need to repay this amount in the next financial year (FY24-25) when they leave the company. The employee is seeking advice on how to manage the income tax implications of receiving money in one financial year and repaying it in another, especially since it's already reflected in their Form 16.

Salary paid only can be accountable.
Ok possoble

well, thats unfortunately is the cost that you decided to bear yourself by not fulfilling the terms of joining bonus. The best you can expect is from your employer to reduce your reported income for FY 2024-25 to the extent of joining bonus. 

Thank you for your responses. 

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