Whether a Retention Bonus is taxable under the Income Tax Act? Similarly, when an employee repays the retention bonus to the employer upon leaving the company, can they claim any exemption under the Income Tax Act? If yes, please tell me.
From India, Madras
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From India, Madras
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The word Retention Bonus is a payout. It will be considered as income in the hands of the employee and hence taxable. If you pay it as an advance and recoverable, a certain percentage of interest will be considered as income in the hands of the employee. Please check with an auditor on this. Anyway, the word Bonus will attract tax as it is a payout.
Siva
From India, Chennai
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379Siva
From India, Chennai
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