HR were clever and never mentioned the conditions in offer letter but in the agreement. Now retention bonus for 1 year is paid semi annually on completion. If you resign, the year is calculated from that date and any payment within that time has to be returned.On resignation, the year is calculated from the resignation date instead of joining date from which the year actually completed. This was communicated in agreement signed on joining day. They ask for full refund of the amount paid in the year calculated from resignation. Since it is not a monthly income but periodic payment done under conditions, is it legal to list bonus under Salary sec 17 (1) , is it not contingent income ? How is back calculation legal ?
As retention bonus comes with conditions and is paid periodically, is it not contingent income? Legally, you cannot claim deduction for bonus paid back to ex employer, as seen in earlier judgements of tribunal. So, should it not be apart from FORM 16 and shown as other income or debt? How else do you claim tax refund ? Do you pay back less the amount of Tax ?
