Tax refund of joining bonus clawback

Hello,

I had recieved a joining bonus from a company in FY22-23, which I had paid back in May 2023. I had asked them to adjust the same in the form16, but it was not done by the company. While filing my tax return for FY22-23, I did not apply for the refund on the joining bonus as I was not sure of how to do it.

 

I have fnf settlement statement where they have mentioned Joining Bonus recovery, and I also have the transaction proof of the bank showing payment of the said amount.

 

Now can I get the tax refund for the tax amount on this joining bonus? What is the process for getting it done? I saw somewhere I can still apply for refunds within 12 months from closing of the AY. Is that correct?  Any help and guidance on this would be much much appreciated. 

 

Please let me know if you want more details on this.

Replies (10)
Quick Summary
This discussion explores how to claim a tax refund for a joining bonus that was repaid. The original poster received a bonus in FY22-23 and repaid it in May 2023, but the company didn't adjust it in their Form 16. They are seeking guidance on how to get a refund for the tax paid on this bonus, including whether it's possible to claim it within 12 months of the assessment year closing. Other users offer advice, with some suggesting it can only be adjusted in the Form 16 and others citing legal precedents that may disallow such adjustments.

You can adjust it from current salary... separate refund cannot be done

So you mean to say that i will need to apply for the tax refund while filing the AY2024-25 return for FY2023-24? During that i will need to submit the proof? I cannot apply for it adhoc? like anytime this week (i will be doing ITR filing fo FY23-24 in June).

contrary to other opinions expressed here, you cannot adjust this in any of the assessment years. : Income Tax Appellate Tribunal – Chennai, S.S.N.Ravi, Chennai vs Assessee on 6 May 2016 I.T.A. No.933/Mds/2015. Assessment year: 2008-2009 will apply to your case. No reduction in taxable salary is permitted on account of bonus clawback.

So can i file a revised return for previous FY with adjusted amounts? I do have the proofs of returning the said amounts. Or is there any other way of getting the refund? 

you cannot reduce your last year's salary or claim any refund.

Then how is one supposed to get the tax amount refund? is it the case even for where the amount was refunded in the same FY?

unless it reflects in the Form 16 ie salary is reduced in Form 16 itself, you wont be able to claim the refund. 

Post figures

The bonus was 1.5L. accordingly tax would be 45k.

Can you give more details? tunnel rush

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