Company asking for to return twice the Joining Bonus amount

[User_dde4947e]

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User_dde4947e
PARTICIPANT
February 20, 2025 at 4:12 am

Hi,

I am stuck in a troublesome situation and would like suggestions on how to solve this.
I joined a company in December, the offer letter mentions 2 lac as their joining bonus on paper. I received salary in January and February, I did see some uneven numbers but I thought maybe they have split JB into two parts and giving it. Because the salary credited didn’t saw any huge change in numbers. Tax was heavily deducted.

Last week I put my resignation because this job was not aligning with my experience and work.

Company’s finance team has come back telling they have creditedthe Joining Bonus twice and would want me to give recovery of 4 lac before leaving.

Now I know I am bound to return the money. But that brings me to question that what happens to my tax component? They said they will add recovery, but can I trust them? Is there anything in my hand I can do ?

Also, my joining for next company is in a month. I wanted to use this time to prepare more and returning money right now means I will have no emergency funds. I have asked for leniency multiple times but they seem adamant and stopping my relieving letter.

Any suggestions how can I go about it?

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[Harishguy315]

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Harishguy315
PARTICIPANT
February 20, 2025 at 4:42 am

First, ask them for a clear breakdown of the extra payment(including pay slips, tax deductions(form 16), and any supporting documents) and how they plan to adjust the tax part. Since it was their mistake, they should ensure you don’t lose out on taxes.

If paying 4L at once is difficult, try negotiating for an installment plan. Many companies agree to this if you stay firm. Also, get a written confirmation that they won’t withhold your relieving letter once the payment is made.

If they’re being rigid, consider speaking to a labor lawyer—sometimes just mentioning legal consultation makes companies more flexible.

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[Rapidnishant3404]

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Rapidnishant3404
PARTICIPANT
February 20, 2025 at 5:38 am

Tax you have to claim in ITR

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[Vikasknight404]

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Vikasknight404
PARTICIPANT
February 20, 2025 at 4:59 am

Since they have done a mistake, you can ask them not to report the joining bonus as your salary. If they do so then you won’t have to return back the tax amount. But if they don’t, then you’ll have to pay them the tax amount also and you won’t be able to claim any refund for this in your itr.

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[User_dde4947e]

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User_dde4947e
OP
February 20, 2025 at 5:09 am

I did ask them for 16B form. But they are withholding it and asking me to clear whole amount (without consideration of taxes- they want me to file ITR return) . But I am not sure I will have leverage to push them after paying the whole amount. Also, my emergency funds will get empty.

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[User_3e1c0e43]

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User_3e1c0e43
PARTICIPANT
February 20, 2025 at 12:04 pm

One of my acquaintance faced the same thing. She left her job in a FAANG type company in one year and she had to return the entire joining bonus (By entire, I mean the tax amount too which was deducted).

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[Fierceanirudh9723]

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Fierceanirudh9723
PARTICIPANT
February 21, 2025 at 6:36 am

The second bonus was a mistake and must be reversed including taxes.

For the first bonus you will have to return it completely including tax on it. It will still be counted in your income.

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