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Tax on bonus refund

ITR Filing 652 views 1 replies

Alex Edword

Self Employed

33 Points Posted on 30 July 2013

I joined software company in April 2012 and received 1 Lakh joining bonus. Unfortunately I had to leave company in July 2012 and I returned joining bonus. In my Form 16 issued by employer 1 Lakh has been shown as my Gross Income, even though I have returned that back. I have certificate from employer that I have returned that amount and when employer gave me bonus in April 2012 tax was deposited to income tax department at 30% rate.

I want some help to get that extra tax money. I am not sure how to show in ITR that I've returned that money back. Please help me.

Replies (1)

Mihir

Wealth Manager

5293 Points Posted on 31 July 2013

You will not be able to recover the TDS deducted by the employer on that extra 1 lac. However, you will need to speak to your employer and ask them to correct form 16 which is showing extra 1 lacs that does not form part of my gross salary, since you have already returned that amount. It is alright if they have deducted excess TDS.

File ITR with the correct form 16, and then you can claim TDS excess paid over and above your tax liability.