My Employer incorrectly calculated my incentives in Sep'18 & credited amount more than I was entitled for. Upon detecting their error HR proceeded to recover part of excess incentive through my Dec salary. I was not paid my salary in December-18, also a relocation reimbursement amount was attached in the recovery as well. But this recovery could cover only half of excess amount. The recovery from Dec salary is being done using amount after TDS & not on gross salary+reimbursement amount.
My concern is that when the incentive was credited in Sep, TDS was deducted & while recovering the undue incentive through payroll, company HR is again deducting TDS & afterwards adjusting reduced salary+incentive amount towards recoverable excess incentive.
- Is it not leading to me being subjected to double taxation?
- Since I was credited Incentive on net basis isn't that net amount is what supposed to be taken back from me?
- Also if only 50% of recovery was done in F.Y. 18-19; how can i save myself from tax liability on the balance amount that company is claiming from me in this F.Y. as repayment of balance excess credit amount?
Kindly provide answers as I could not find any article on internet which can address to query of above nature.
Regards
Raj
CAclubindia
