Retension Bonus - Refunded - will TAX be returned by Govt.?

Vishal (Senior Software Engineer)   (25 Points)

08 December 2010  

Hi All,

 

My company wants to pay me a rentenion bonus of 1.4 Lakhs (it's advance pay, not at the end), the conditions is I should stay back for next one year from the date they pay it (that's until Dec 2011).I understand it's a taxable amount (30% or so) and I'll receive approximately 1 Lakh when I accept the offer.


The question here is - Suppose I want to leave the company before next December (lock period). As per the condition in the letter I need to re-pay the full amount (that's 1.4L) to the company. What will happen to the tax paid? I understand the comany will not take care about that part - will I be able to file this under IT returns in next financial year and reveive the amount from Income tax dept.? If yes, will I get the full amount and by when that credit to me? Kindly advice.

 

Best Regards,

-Vishal