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UI’m in an IT company and have been working for around 3.5 years. When I joined my first company, i had a joining bonus of 3 lakh rupees of which I received 2.1lakhs after the TDS. Now this joining bonus came with a clause that I had to return it if I leave the company before 3 years. I did leave the company 2.5 years later due to personal reasons and I returned the 3lakh rupees as per the clause. But now, the 90k that was deducted at source, it’s like I’m paying tax for income I didn’t even make, mind you I already pay an Income tax of close to 2.5lakhs every year. I’ve spoken to multiple CAs and consultants and all of them iterate the same thing, the only way to get this back is to make sure that I’m paying back the joining bonus by asking my company to simply cut it off from my pay in the last 2-3 months. But due to the company policy, they said it’s simply not possible, as it is not in their hands on how the pay is disbursed. Also, there is no clause to show this as a loss in any article. And to be fair, this does sound like something that the IT Dept should have a provision for. I find this simply too unfair, Income tax on the income which isn’t really assured due to the nature of employment, and no way to get it reimbursed. I personally know atleast 5 people who went through the same and are equally helpless. Moreover, 90k is a pretty huge amount for someone supporting their family alone. I’m will to proceed legally, but need to know if it is even possible and prudent.
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UHave you reached out to your finance team to discuss on this ??
Most probably they can share workaround for this but if they persist for paying 3L , AFAIK you can raise complaint on ministry of labour !
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UThis is a common issue and adjustment is possible only if they show the recovery of bonus against other items paid to you. This is not possible in many companies as their payroll is not setup to account for this. They will have an accounting issue.
This issue also happens when unavailed leaves are adjusted against notice period. The leave is encashed and taxed. Notice period pay is separately deducted, so employee pays tax on leave encashment without actually getting the money.
It has been happening for years and there are many such unfair rules. It is very difficult to fight it out. IT department will just ask to talk to your company and show the adjustment in form-16.
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UYeah, and honestly, this seems like something that the tax laws need to get a provision for rather than companies. Cuz in most cases, to even show the recovery of bonus, there isn’t enough salary left to pay by the time the employee has put in the resignation and would need an entire back pay for the previous months.
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