Tax Liability for recovered Salary

Get it adjusted against current year salary. Refund for extra paid salary in FY 24-25 wouls not be available.

Employer informed that, recovery will be done like other deductions like personal loan deduction, epf deduction etc,. How can I get tax exemption for this year. 

As time to file revised return is over, no other option except employer deducts it from the current salary.

If the ₹2,00,000 was genuinely paid in excess and is being recovered in a later financial year, the earlier year’s salary is not automatically reduced merely because repayment is now requested. The key issue is whether the amount was salary legally due and whether it was actually repaid; obtain the employer’s revised salary workings and evidence of recovery.

• If the excess was recovered from salary in FY 2025–26, ask the employer to reflect the adjustment correctly in the current year’s salary/TDS records and Form 16. Whether it can be treated as a current-year salary adjustment depends on the facts and payroll treatment.
• If it was already included in taxable salary and tax was paid for FY 2024–25, examine a correction/revised return or other available relief for that year, subject to the applicable return-revision and rectification provisions and timelines. Do not claim a deduction in the current return without support.
• If the ₹2,00,000 was not actually recovered, or was an advance/loan rather than salary, the tax treatment may differ. Reconcile the payslips, Form 16, AIS/26AS and recovery records before filing.

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