Become a Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Tds on incentive

mitesh milind patankar (Accountant) (25 Points)

15 December 2017

Hello ,

Is TDS Deducted on Incentive?

If Yes then Please help me the rate to be deducted on the incentive paid..

In our Company incentive are given Quarterly so TDS to be calculated Salary+ Incentive Or Separetly & Rate to deduct.

Reply
Follow
Share

2 Replies

unnati sharma (39 Points)
Replied 15 December 2017

Tds on salary nd incentives to be calculated in same way as we calculate income tax on our income according to tax slabs like income upto Rs. 250000- Nil tax.
above Rs 250000- Rs 500000- 5% tax rate
above Rs 500000- Rs 1000000- 20% tax rate
above Rs 1000000- 30% tax rate.

now it depends wat kind of incentives r u getting? Some are exempt upto some threshold limit..

Upgrade to CAclubindia Pro. Subscribe Now!

Krishna Chaudhary (Accountant) (4531 Points)
Replied 15 December 2017

TDS also applied in case of incentive in salary under sec 192. TDS is calculated on basis of computation after considering all other sources of income and deductions available in income tax.