TDS on Bonus., Income Tax

[Pratyush Parashar]

Dear Sir,

Company declares performance bonus in the month of June'13 for the Financial Year 2012-13. What would be the tax treatment (TDS) for this bonus? Whether TDS is deducted for the FY 2012-13 or FY 2013-14?

Posts / Replies

[rosy sachdeva]

Dear Sir

If the amt of bonus liability determined in March 13 ,we should deduct TDS & deposit by April 13 ,file our return by 15th May 13 & may actually pay in June 13

However if there is no TDS liability for Bonus then we can book the liability even for 2012-13 in June 13

but if there is TDS liability then also we can book it but the return may either be late sent or they will be revised & expense booked for 2012-13

[Deepak Whorra]

This reply does not answer the question but raises more issues

[sanjeev bajaj]

Performance Bonus  to employees is part and parcel of Salary assessable under the Head  "Income under the head Salary" hence tds has to be made u/s 192,of the Income Tax Act, 1961 which allows the deduction of tax at the time of payment.

Hence, TDS at the time of payment