CA.Varalakshmi.M (Manager-Finance) (482 Points)
27 August 2012Hi friends,
Incentives to employees for the period of Jan to March'11 are in pending ,we are paying those incentives in the mnth of Aug'12 .
But with out considering those incentives income we have issued form 16 to employees for the financial year 2011-12.
But in the company financial statements we have shown those incentives as expense in the f/y 2011-12 only.
Do we need to issue revised form 16 considering incentives r do we have any other remedy ?
Please suggest.
CA Rakesh Garg
(Asst. MGR Taxation)
(510 Points)
Replied 27 August 2012
Hello M. Varalakshmi
It depends on nature of incentive given to employess. if incentives are accrued wid salary , then TDS also to be deducted on that.
if TDS not deducted on that, then TDS return also to be revised with depositing TDS with interest and Revised Form -16 to be issued to employess.
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 27 August 2012
They are quarterly incentives and have to be paid for the year f/y 2011-12 only but we have made the payment lately .
CA Rakesh Garg
(Asst. MGR Taxation)
(510 Points)
Replied 07 September 2012
yes, even quarterly incentives are also part of taxable salary, and tds have 2 be deducted on that amount and revised form 16 have to
be issued.
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