GoofyDonut
GoofyDonut

Joining bonus recovery - ITR

Hi All, I switched to a new company last year and because of penalty clause, my joining bonus is deducted from the f&f settlement of the previous company. The issue is in my form 16 they have included it in my total earnings. Now my old employer is not correcting it. Whats the way forward? Can i correct it while filing ITR?

23mo ago
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DerpyJellybean
DerpyJellybean

You need to ask your old company to provide revised F&F as it was deducted from your compensation or provide some letter to verify it. If not you can complain with the labour ministry.

GoofyDonut
GoofyDonut

Thanks, so no need for revised form 16?

BubblyRaccoon
BubblyRaccoon
Myntra23mo

On the same boat. The Indian Tax ecosystem in general. Completely messed up.

GoofyDonut
GoofyDonut

Just filed it. Adjusted myself. Hopefully my f&f settlement form suffices in case of any verification.

SnoozyWaffle
SnoozyWaffle

In my opinion, you can remove the amount that you got in bonus and fill ITR....there will be a mismatch from form 16, but that fine I think as you have proof that company has got that back from you....

DizzyLlama
DizzyLlama
Atlys23mo

Never knew there was something called bonus recovery as well

GroovyBoba
GroovyBoba

Companies sucks every penny out of you.

TwirlyPenguin
TwirlyPenguin

Bonus - 100 TDS - 30 You got - 70 — You leave and have to pay back You pay the company - 100 — Because that is what the company paid you! So that is what they show in F&F as claw back too

This is an issue with bonus recoveries - you lose the TDS.

GoofyDonut
GoofyDonut

So that recovery was just an expense? And not deducted from total earnings?

SnoozyDonut
SnoozyDonut

If it was paid & recovered in same fy, get a revision. Unfortunately, nothing can be done if both are in different fy.

GoofyDonut
GoofyDonut

Yes, different FYs☹️

SwirlyNoodle
SwirlyNoodle

This is an issue. In most cases, you lose the tax paid

MagicalQuokka
MagicalQuokka

Name and shame, please

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