Treatment of Joining/sign-up bonus in income tax calculations?



Assume that an employee joins a company and get a joining bonus after 3 months (taxed at source @ 30%). As per the employment terms, he has to serve minimum 1 year to avoid repaying the joining bonus. For some reason, if the employee leaves the company before 1 year, typically companies withhold the full joining bonus amount (more that what was actually received by employee post tax) in his full and final settlement. Actually, the employee has not gained anything in this transaction and in fact paid income tax for an amount, which did not accrue to him. In such a situation, is he eligible get a rebate on the tax paid by him? Where should he claim it – with employer or with IT department?

Treatment of Joining/sign-up bonus in income tax calculations?
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