Whether Retention Bonus is taxable under Income Tax Act? Similarly when employee repaid the retention bonus to employer at the time of releave the company, he can claim any exemption under Income Tax Act? If yes pls. tell me..
The word Retention Bonus is a pay out It will be considered as income in the hands of the employee and hence taxable.
If you pay it as an advance and recoverable, certain percentage of interest will be considered as income in the hands of the employee Pl check with an auditor on this
Anyway, the word Bonus will attract tax as it is a pay out
Siva
Dear Siva,
Thanks for your reply. If employee repaid the bonus to the employer at the time releave that company, then he can get rebate for such amount?
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