Income Tax (ITR) Query

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Deal Lieutenant
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Hey Guys,

Though not the proper forum, but needed advice from all the CA’s here.

I’ve to file my ITR by tomorrow. So, if any of you guys can help me out in answering the below question. That would be great.

1. I received a certain amount as part of Joining Bonus in fiscal year 2018-19, for which i paid taxes in that fiscal year. Next year in 2019-20, i had to return that Joining Bonus amount (Exact amount which i received) back to the same employer since i left the company before an year.
– Now problem is there is no mention of this amount which i paid back to the employer in the Form 16 of 2019-20.
So, how should i show this amount as a deduction while Filing ITR ? Is there any section which i can leverage ? Or shall i lower the total taxable income by this amount ?

Hoping for an answer smile Thanks Guys

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You could have asked your employer to adjust in the salary and also reflect it in the 16a. Since this amount seems to be in nature of penalty for the breach of contract, you cant adjust it against the salary income. If you have any business income you could have claimed it under general exp u/s.37. and further, tomorrow is the due date for march19, and 31st dec is the last date for filing for the year march20 if your return for march 19 is pending, dont include that in the income. Or just check if u can revise the return for march19

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last date of filing return for 2019-20 is 31st Dec.
However, even if it is adjusted in your form 16, it will not be separately mentioned but the total salary credited will be reduced by this amount. So cross check your form 16 with the monthly pay details. In case they have not done it, you can ask them to file a revised return for reduced amount. Your form 16 will change accordingly. But unless it is reflected in form 16, you cannot claim benefit in ITR.

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Tjs15 wrote:

You could have asked your employer to adjust in the salary and also reflect it in the 16a. Since this amount seems to be in nature of penalty for the breach of contract, you cant adjust it against the salary income. If you have any business income you could have claimed it under general exp u/s.37. and further, tomorrow is the due date for march19, and 31st dec is the last date for filing for the year march20 if your return for march 19 is pending, dont include that in the income. Or just check if u can revise the return for march19

Thanks for the reply.

I’m a salaried person. So, according to you i cannot exempt this Joining Bonus Amount ?

Isn’t there a way to change the total taxable income while filing ITR ? Or is that risky ?

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panchabhut wrote:

last date of filing return for 2019-20 is 31st Dec.
However, even if it is adjusted in your form 16, it will not be separately mentioned but the total salary credited will be reduced by this amount. So cross check your form 16 with the monthly pay details. In case they have not done it, you can ask them to file a revised return for reduced amount. Your form 16 will change accordingly. But unless it is reflected in form 16, you cannot claim benefit in ITR.

Thanks for the reply

I’ve cross checked my From 16 multiple times, that amount is not mentioned anywhere. I asked the payroll company of my employer about it and they replied saying “Deductions aren’t part of From 16”

What do you recommend i should do ? I was thinking of just lowering the total taxable income by this amount while filing ITR. And if any notice comes, i will show them the RTGS transfer that i did from my bank account to my employer and the F&F summary from my employer which states that they have received the amount.

Or any other suggestion if you’ve

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JackReacher wrote:

Thanks for the reply.

I’m a salaried person. So, according to you i cannot exempt this Joining Bonus Amount ?

Isn’t there a way to change the total taxable income while filing ITR ? Or is that risky ?

You should revise your IT return for the FY 18-19 by excluding that bonus. Was it mentioned in the form 16 of that year?

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JackReacher wrote:

Thanks for the reply

I’ve cross checked my From 16 multiple times, that amount is not mentioned anywhere. I asked the payroll company of my employer about it and they replied saying “Deductions aren’t part of From 16”

What do you recommend i should do ? I was thinking of just lowering the total taxable income by this amount while filing ITR. And if any notice comes, i will show them the RTGS transfer that i did from my bank account to my employer and the F&F summary from my employer which states that they have received the amount.

Or any other suggestion if you’ve

it is not deduction. it effectively negative salary/refund of salary. so logically in form 16, total salary credited for 2019-20 should be reduced by this amount. but unless your employer shows it accordingly in for 16, there is nothing you can do. the IT dept will pick your salary income as reported by the employer. if you file lower income, it will create a demand for tax.

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I don’t think you can claim any deduction in the current year, as there is no clause for the same!
You can revise the return as someone suggested but it’s bit of a grey area, and if the amount of tax is big enough that you think you may want to defend it even in court, go ahead!

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Awake wrote:

I don’t think you can claim any deduction in the current year, as there is no clause for the same!
You can revise the return as someone suggested but it’s bit of a grey area, and if the amount of tax is big enough that you think you may want to defend it even in court, go ahead!

Two things:
•You cannot deduct this from the current income for sure https://www.legitquest.com/case/ssnravi-chennai...
•Could be adjusted in the current year only if u received net amount from the employer https://indiankanoon.org/doc/6594756/#:~:text=p....

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You can’t reduce salary or claim refund….
1. Joining bonus is part of your income
2. Penalty you paid to your ex employee…there is no such clause where you can deduct such amount.. .. summary you cant adjust this amount against your income.

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Sudarshan61 wrote:

You can’t reduce salary or claim refund….
1. Joining bonus is part of your income
2. Penalty you paid to your ex employee…there is no such clause where you can deduct such amount.. .. summary you cant adjust this amount against your income.

That’s right.
Very well articulated in simple terms.

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Whats the last date for filing ITR?
It’s shows 30th Nov i.e today, somewhere else it shows 31st Dec

Missing