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I work with an MNC and fall in the 30 per cent tax bracket. I received a bonus of ₹5 lakh this financial year from my company, which was given after deduction of tax (30 per cent plus applicable surcharges).
If I leave the company within two years, I need to pay back this amount fully to the company.
In case I leave the company within two years and pay back the company, is it possible to get a tax refund from the IT department?
If yes, how can this be mentioned/shown in the the IT return ?
Sneha
The tax regulations do not specifically address your specific case, wherein continuity of employment is given as a pre-condition for retaining the bonus amount.
However, since you need to continue in employment for two years failing which you have to repay the amount, a position can be taken that the bonus amount is not due to you till the time the condition is satisfied.
Accordingly, if you have to repay the money/it is recovered from your pay, you should not lose out on the tax impact for the amount that you have not earned.
For this purpose, you could discuss with your employer on how the bonus recovery would be made and reflected in your Form 16/full and final settlement computations.
My sister expired in April 2015 and nominated my daughter in one of her fixed deposit receipts in HDFC BANK for ₹1.78 lakh. My daughter received the proceeds.
What will be the tax liability? Will the interest be treated as her income or will the total amount be treated as gift? My daughter got married in July 2015.
Madhu Tulshan
From the facts, we understand that your daughter has received the proceeds based on your sister’s nomination.
Accordingly, your daughter has not obtained ownership of the asset (fixed deposit).
Hence, the interest accrued on the fixed deposit would have to be included as income of your sister and taxed in the hands of her legal representative. Further, the proceeds received by your daughter from the bank are by way of inheritance and, hence, it will be treated as a capital receipt with no tax liability for your daughter.
The writer is Partner, Deloitte Haskins and Sells LLP. Send your queries to taxtalk@thehindu.co.in
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