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chhedaharish
Jan 5, 2007, 05:16 AM
While joining a new employer, my previous employer deducted some amount under bond recovery head. Previous employer has deducted tax on this amount.
Now my new employer had reimbursed me with same amount. But again tax is being deducted in same amount.
Which employer has the right to deduct the tax?
Thank You
Harish

AtlantaTaxExpert
Jan 5, 2007, 05:53 AM
Harish:

I cannot say whether your employer has the right to impose this tax. There is no federal tax that operates under the name "bond recovery head".

It is probably a state or, more likely, a local tax.