Security deposit accounting

Ya it can be acceptable it's caution deposit some companies are deducting for safety purpose, it should be refunded while relieve from the company,  

1. Security deposit deducted from salary is for the purpose of security in case if the employee's action results in any uncertain loss to the company. 
2. This deposit is in the nature of liability to the company and it should be returned to the employee at the time of his relieving from the company. 
3. The proper accounting entry would be,
Salary         Dr 
To Security deposit A/c 
To Bank A/c 
Security deposit in the above case will go to the Liability side of the BS in companies Books. 
Please correct me if the above solution has an alternative view. 

What is the treatment of the same in the hands of such employee?

Where to include it while preparing ITR?

Dear Expert 

What should be accounting entry for forfeiting the Security Deposit ?  

Where will the Security Deposits of Employees posted in Banking Companies Accounts