In 1st financial year company pays joining bonus. It includes it as part of earning in Form-16. In next financial year, company recovers the joining bonus amount from employee, because he has not completed required period in the company and left the job.
The company has not mentioned the joining bonus recovery in form-16 for 2nd year ( i.e. company has not deducted joining bonus recovery amount from overall salary income).
Can the employee claim the tax amount while filing ITR for 2nd year ? If Yes, how to claim while filing ITR?
Yes, the employee still can claim the TDS did on this part. But the employer must give a proof of recovery of such bonus. The entire income (joining bonus) is not taxable as the employer recovered it. Hence, you can claim the total TDS towards such bonus.
I also think on same line as you. However I found the following article, which states in contrary. The IT tribunal has given a verdict in 2016 on this. I am not sure, there is any change in IT law after that.
Can you please share your opinion.
What shared in that article is valid. Because it is because of EMPLOYEE’s own fault that he left the company but not terminated by the employer. Hence, I think there is a valid piont in what ITAT judged. Thanks for sharing this piece of information.
Yeah I agree. But some how I do not share the logic of natural justice.
“A person is forced to pay tax on the amount he has not earned”. Since he left the company, he is obliged to pay back the money to company he received as joining bonus. So his earning should be calculated after deducting the joining bonus.