Adv. S Sharma (Lawyer) (574 Points)
17 March 2008Hi all
I m employer and paying salary to one of my employee amounting to Rs. 900000 (9 lakh), its not professional fees. Employer Employee relationship.
Employee is non resident and resident of France. His stay period in India more than 183 days.
Plz tell me TDS rates on this transaction and also how can I calculate TDS on monthly basis ??????
thx
Sachin
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 17 March 2008
Normal slab rates which are applicable to the relevant assessment year for respective assessees should be applied. As the salary exceeds basic exemption limit, tax has to be calculated on slab rate basis.Such tax has to be deducted on monthly on an average basis.
Adv. S Sharma
(Lawyer)
(574 Points)
Replied 17 March 2008
thx sir
in our case I m paying 300000 as a bonus in the end of year , so what should I do in this case ?
should I DEDUCT TAX 900000 + 300000 = 1200000 (ON MONTHLY BASIS)
OR
should I deduct tax on bounus amount at the end of year ?
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 17 March 2008
Deduct TDS on Bonus only on payment.Not on accruel basis.
Adv. S Sharma
(Lawyer)
(574 Points)
Replied 17 March 2008
FACTS:
TOTAL SALARY = 4728653
BONUS IN THE END OF YEAR = 3218115
TOTAL INCOME 7946768 (4728653 + 3218115)
TDS on bonus at the time of payment it means 3218115 * 33.99 % = 1093837
is it right ????
How can I show this in computation ? I mean Seperate TDS ?
CAN U GIV ME URS MAIL iD THAT i'LL SEND U what i made AND U CHECK IT FOR A WHILE. i'LL BE GR8FULL
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 17 March 2008
Firstly saching this is a taxable salary because employee and employer relationship is exist.
Acc to the income tax act,salary is taxable on the receivable basis and if you are paying bonus monthly basis than you will otherwise if its falling in the current yr.You otherwise you cant.. tell me the breakup
CAclubindia
