Bonus Given With Conditions

Hi Amit, Your querry has multiple threads which need to be examined carefully. 1. A bonus can never be conditional so what you\'ve got is to be paid back then it cannot be termed as a Bonus Per Se! 2. You should treat the said receipt as liability in your books of account because you intend to quit later and you\'re liable to pay back that amount. 3. Regarding TDS already made by the company, you may claim refund by filing your ITR for FY 2012-13 before 31st July 2013 and pay back the company full amount i.e. Actual receipt plus TDS made. 4. Your tax consulatant will have to exercise due diligence while preparing your ITRs for FY 2012-13 & 2013-14 so as to ensure that you do not end up paying more income tax than you should. 4. Shri Laxminarayana has rightly pointed out that a compnay cannot claim back bonus paid to employees and you can approach a labour court for resolution but before opting for a legal battle in this regard, it would be imperative for you to find out as to WHAT trea

Mr. T S Ramani
various incentives paid to the employees are not covered under Payment Of Bonus Act, hence it cannot be termed as Bonus.
Bonus is liable to pay once in a year which is compulsary under payment of Bonus ACt.
However incentive can be paid by discretion of management subject to performance or target achievement etc.( which is conditional).
Both Incentive and Bonus are taxable.
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