Return to Work Payments
A return to work amount is paid to induce a person to resume work, for example, to end industrial action or to leave another employer. It does not matter how the payments are described or paid, or by whom they are paid.
These types of payments, to induce workers to return to the workplace, cannot be classified as Payment Type – Bonuses or Commissions or Lump Sum Type-E but must be taxed as Return to work payments (as per NAT3347 Return to Work Payments) and reported as Lump Sum Type-W YTD amounts.
There are no arrears tax offsets available to the employee in their IITR for lump sum type-W payments.