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Retention bonus returned to employer

625 views 1 replies

Anonymous

Dev

21 Points Posted on 26 March 2023

I received 1 lakh rupees from my previous employer in april 2022 under special incentive head in salary slip. The 1 lakh amount is part of the retention bonus which needs to be paid back to the company. I have in total returned 2 lakh rupees in fy 2022 23. 1 lakh was paid in the previous financial year 2021 22 and also reflected in respective form 16.

Employer says the paid back amount is not removed from form 16. 1 lakh rupees which was received in april 2022 is returned in the same financial year i.e. 2022 23.

Can I reduce the total taxable amount while filing the return?

Replies (1)

CA Rakesh Ishi

Working at Private Company

8637 Points Posted on 26 March 2023

As per income tax rules, any income received by an employee is taxable in the year of receipt, irrespective of whether the income is subsequently returned or not. Therefore, the 1 lakh rupees received by you in April 2022 will be considered as taxable income for FY 2022-23.

It is recommended that you consult a qualified tax professional to ensure that you file your ITR correctly and claim all the deductions you are entitled to.