Incentive to Marketing people

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Anil (Querist)
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21 August 2008 Incentive is being paid to Marketing people after the end of the year based on sales achieved by them. Sometime this incentive is called bonus.

Should one consider this under the head 'Salary' for TDS purpose? For YES or NO kindly give reasons.

Thanks.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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21 August 2008 yes TDS to be deducted on gross amount

Anil

Anil (Querist)
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21 August 2008 Dear sir,

Thanks for your reply.

I am aware that TDS is to be deducted on gross amount. My question has two parts. They are -

1)Under which head TDS is to be deducted.

2)The reasons for above answer.

KINDLY Answer BOTH questions.

Thanks

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CA E.A.Ravikumar

CA E.A.Ravikumar (Expert)
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21 August 2008 "Salary" as defined u/s.17(1) includes
wages,fee, commission, perks, profit in lieu of salary etc., so the TDS needs to be deducted under the head salaries.