- There is no specific provision under the Income tax Act for treatment of return of joining bonus
For detailed discussion you may opt for phone consultation
Query regarding taxation on joining bonus repayment
I am resident of India and employed in India. I joined cadence in september 2024 and got 2000000 joining bonus as part of my renumeration with a 2 year bond period. At that time I received about 1400000 after tax. No I am leaving in May 2026 and I have return 40% which comes out to be 8 lakhs. Is there a way to save tax on this ?
Asked 1 day ago in Income Tax
No, in your case there is generally no separate tax deduction/refund benefit for repayment of the joining bonus, since it was taxed as salary in the earlier year and the recovery is happening in a later year.
The Income Tax Act does not specifically allow deduction of such bonus repayment from your taxable salary now.
As a practical step, keep the recovery proof and check that your employer correctly shows the recovery in your full & final settlement/Form 16.
For a more detailed review of your case, you may book a phone consultation.
CA Shubham Goyal
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA