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Tds on salaries

Satheesh (CMA & CA Final) (189 Points)

04 January 2013

Hi,

Should we deduct TDS on Incentives (Bonus etc.).

Thanks,

Satheesh

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7 Replies

kavitha (studying final) (830 Points)
Replied 04 January 2013

can u elobarate a little??

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Satheesh (CMA & CA Final) (189 Points)
Replied 04 January 2013

When we are paying bonus to employees of the organisation, should we deduct TDS on it, if their Total salary exceeds tax limit.

SURENDRA MOROLIA (SERVICE) (50 Points)
Replied 04 January 2013

Yes, Tds is to be deducted . Please refer definition of Salary which includes Bonus also.

kavitha (studying final) (830 Points)
Replied 04 January 2013

yes , u need to deduct tds on bonus. if both salary + bonus combined does not exceed exemption limit then u need not deduct tds

in ur case tds is applicable

SURENDRA MOROLIA (SERVICE) (50 Points)
Replied 04 January 2013

Yes, Tds is to be deducted . Please refer definition of Salary which includes Bonus also.

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Deva R (student) (83 Points)
Replied 04 January 2013

Dear Satheesh Sec 192 states tax is to be deducted for payments that would be taxable under the head "salaries" Sec 17 defines salaries in a inclusive manner. Incentives n bonus, though not specifically covered in definition, are outcomes of employement hence, they r to be taxed under salaries. Since, they fall under the income salaries "tax is supppsed to be defucted"