Can you claim the amount of the bonus repaid to your employer? | Mint

I paid £ 10 Lakh as a bonus for connection, which I had to repay if I left the service within three years. The same is in my form no. 16 included, and taxes were deducted on the source of this bonus amount. I decided to stop my service before completing three years, and therefore had to repay the entire bonus amount of the connection. Can I demand that the bonus be refunded at my salary revenue? Any amount received from the past or the current employer is taxed under the salary head, and the employer must deduct the appropriate tax at the time of payment of the bonus that joins. Can you claim the deduction? Thus, the connection bonus you received was taxable in your hands as a salary, and your employer treated it correctly as a salary and deducted its appropriate tax. Although the connection bonus was taxable in your hands at the time of the receipt, there is no provision under the income tax laws to allow any deduction if it is to be repaid to the employer. So, although you paid taxes on the amount of the connection fee received, you will not receive a deduction to repay it. What do the tax regimes say? Under the tax laws, two items are currently eligible for deduction against salary. The first is the standard deduction, for which each salary and pensioner are eligible. The amount of standard deductions available under the old tax laws is limited to £ 50,000/- where you get a higher deduction to £ 75,000/- if you choose the new tax regime. The second deduction is available in respect of the amount of the professional tax deducted by your employer. Except for these two deductions, no other deduction is available at the amount of taxable salary. Balwant Jain is a tax and investment expert and can be reached on [email protected] and @jainbalwant on his X handle. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions.