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Tax on joining bonus in india


I am not a tax expert, but received a bonus which caused me to be way over-taxed, and looked into this myself.
The assessee is a employee of Barclays Bank 3 card poker 6 card bonus odds during the financial year 2007-08 from to and received salary income of 13,46,943/- after resignation of service joined Deutsche Bank and received salary of 56,12,481/- were as the assessee has declared salary income in the return.Considering the apparent facts, terms of employment, characteristic of sign on bonus and the service certificate of Barclays Bank were assessee has voluntarily left the service.The employee had free video slots with bonus to play decreased his taxable income by amount of joining/Sign-on Bonus/Signing Bonus.25,00,000/-(.25 lakh) refunded to previous employer and filed for refund.7,72,266/.Refund.7, 72,266/- was not allowed!Still the employee suffered loss.The characteristic of sign in bonus is Revenue receipt and it cannot be considered as compensation of forfeited amount or additional premium prize.Income Tax Appellate Tribunal Chennai (itat) has examined the matter and provided Crystal Clear answer: 'Joining Bonus' or Sign on Bonus or Signing Bonus returned to ex-employer cannot be deducted from salary income!Therefore, we are not inclined to interfere with the order of Commissioner of Income Tax (Appeals) and uphold the same.An employer will do this for you, or should.So Employee should understand the Income Tax Liabilities and negotiate for Income Tax liability also, while negotiating his/her contract of employment and pay package.IT might be made part of CTC; Cost to Company.Authorised Representative only disputed issue being sign-on-bonus should be allowed as deduction from the gross salary since it was repaid and offered to tax in assessment year 2007-08.If I were to actually give my clients the answers that Quora expects, I wouldnt have clients anymore. .As per service certificate of bank referred at page 16 of paper book, the assessee has left the bank on his own accord.Income Tax Savings, the employee should discuss the break up with his counsels specializing in Income tax matters and prefer to insist on higher Cash in hand/Take home, and thus relative savings in say; PF, ask the employer to offer Joining Bonus without any condition.'Joining Bonus' returned to ex-employer cannot be deducted from salary income!
Your actual tax rate on your tax return can be a lot more or a lot less.
Further notice u/s.148 of the Act was issued and in compliance to notice, the.


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