Hi all,
I worked for one company as an engineer, and after 11 months of completion, I left that company 3 months ago. They deducted some money as a bonus from my every month's salary, and after a year's completion, they provided that money as a bonus. In my offer, they did not mention any time period for the bonus. My CTC is included in that money, and I have to pay tax on that money also.
I worked for 11 months, and during these 11 months, they deducted money from my salary. But I left the company in 11 months. They are not giving that money. The company is saying that when you complete one year, then only we can process your amount. But I also have to pay tax on that deducted money.
For proof, I have an offer letter where they mentioned the amount as a bonus.
Please advise me on what I have to do. Is there any way to remove this bonus amount from the tax?
From India, Chennai
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I worked for one company as an engineer, and after 11 months of completion, I left that company 3 months ago. They deducted some money as a bonus from my every month's salary, and after a year's completion, they provided that money as a bonus. In my offer, they did not mention any time period for the bonus. My CTC is included in that money, and I have to pay tax on that money also.
I worked for 11 months, and during these 11 months, they deducted money from my salary. But I left the company in 11 months. They are not giving that money. The company is saying that when you complete one year, then only we can process your amount. But I also have to pay tax on that deducted money.
For proof, I have an offer letter where they mentioned the amount as a bonus.
Please advise me on what I have to do. Is there any way to remove this bonus amount from the tax?
From India, Chennai
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Hi, by rules you are eligible for taking bonus amount. you have claim for your bonus amount. thanks, Vaishali
From India, Nagpur
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From India, Nagpur
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Let me correct you by saying that your CTC will not attract tax. It is the salary, allowances, incentives, and bonus that are earned that will attract tax and not the cost to your company. If you have not earned a bonus, you need not include the same in salaries and allowances in the tax returns. The employer, while generating Form 16, will also not mention this amount.
The company cannot deny a bonus by saying that you have to work for 12 months to earn a bonus. That defense is totally incorrect and illegal. But they can refuse to pay a bonus if your salary exceeds Rs 21,000 per month by saying that you are outside the scope of the Bonus Act. If they refuse on that ground, you can demand it by countering that there is a breach of contract, and since the amount of the bonus is mentioned in the salary statement (CTC structure), the bonus is one of the conditions of service, and non-payment of it would be a breach of service condition. Then you will get it.
From India, Kannur
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4483The company cannot deny a bonus by saying that you have to work for 12 months to earn a bonus. That defense is totally incorrect and illegal. But they can refuse to pay a bonus if your salary exceeds Rs 21,000 per month by saying that you are outside the scope of the Bonus Act. If they refuse on that ground, you can demand it by countering that there is a breach of contract, and since the amount of the bonus is mentioned in the salary statement (CTC structure), the bonus is one of the conditions of service, and non-payment of it would be a breach of service condition. Then you will get it.
From India, Kannur
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