Is TDS Applicaple?

You should  book crate a new ledger for bonus and book it under indirect exp. And deduct tds including bonus with salary of employee.

Also guide me how to treat the accounts when leave and incentive are paid.

to deduct TDS on them too.

and to book them into new legder or in the salary account of the employee.

Thanking you,

Regards,

Nitil Agarwala.

Yes create separate account of each head and incentive and leave encashment are exempt upto 3Lac.

Mr. Pankaj,

What are you writing that Leave Encashment is exempt upto 3 lacs.

Respected Harpeet Sir,

Please guide me on the above matter.

Thanking You

With Regards,

Nitil Agarwala
 

hello harpreet plz. dont be nagative

please guide me on urgent basis plzzzzzzzzzzz

.. watever amt. u pay which forms part of taxable salary

will liable for TDS U/s-192

weather it is a Leave encashment or something else

u just determine 1st what is the amount taxable under the head SALARY for the employee...as per the IT act..and then proceed for TDS..

bonus or leave encashment received from the employer  is taxable under the head of salary because there is a employer and employee relationship so TDS need to be deducted U/S 192 B.