One time bonus

Tax queries 168 views 2 replies

Suresh M

Software Engineer

30 Points Joined April 2013

Hi Sir/Madam,

I work for an IT company in Bangalore. During our hike cycle in April 2021, I was given a one time skill bonus of 3 lakh rupees,which was not part of my CTC. This has a clause that if I leave the organization before April 2022, I must pay the amount of 3 lakh to the organization.

As I am in 30% tax slab, I could get only 2.1 lakh of 3 lakh bonus, with 90k gone into tax.

Firstly, is one time bonus taxable or any exemption we can apply while income tax filing return ?

Now, I have got offer from a different organization and I have resigned in my current organization. In this case, I am asked to transfer 3 lakhs to company account as NEFT.

In this case, I should pay 2.1lakh of what I had received + 90k of the amount who went into tax from my pocket.

As I am returning 3 lakh, is there a way where I can show to get my earlier 90k tax exemption as I will be returning complete one time bonus back to organization ? Atleast it would save me not to pay anything extra from my pocket.

Please help in case there is a way to address current situation.

Regards

Suresh

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208770 Points Joined July 2016

Though it is little difficult, but you can be saved, by your company.

By returning 3 lakhs back, if your company change the TDS certificate, wherein the total payment during the financial year 2021-22, do not include the bonus part; in that case you will be able to claim the excess tax paid in ITR.

Kev Men

788 Points Joined December 2020

Adding to the above answer, it is advisable to ask your company to rectify your form 16/tds certificate and remove the 3 lakhs bonus as well as remove the TDS portion allocated to you since it is not your income. They should also refund Rs. 90000 to you. This would be an ideal situation.