Tds on referral bonus to employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2012 Please let me know under which section tds will be deducted if referral bonus is paid to the employee of the company.

If possible plz revert with case laws on the issue if any

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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06 December 2012 The bonus forms part of salary. The definition of salary is quite wide to cover such bonus.
Contratual bonus shall be regarded as salary and gratuitous bonus shall be perquisite.
See Section 17.