Performance Incentive – TDS to be deducted on finalization of incentive.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Performance Incentive – TDS to be deducted on finalization of incentive. - Commentaries / Editorials Dated:- 10-9-2007 - News - On the issue of deduction of TDS on estimated basis u/s 192 and with re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... gard to performance incentive, honorable Delhi High Court in a recent judgment ( as reported in 2007 -TMI - 1655 - HIGH COURT, NEW DELHI ) has held that, Assessee is right in contending that by its .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... very description the performance incentive cannot be a fixed mandatory payment made year after year. Since it is dependent on the performance of the company in a given financial year, the payment o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f the incentive is not only uncertain but the amount is also likely to vary. Giving the requirement of Section 192 (1) that TDS should be deducted on the "estimated income of the Assessee" it cannot b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e said that the Respondent company was in default on account of the short deduction of the TDS from the salary of its employees to the extent the short deduction was relateable to the performance ince .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ntive. Therefore, it cannot be said that the Respondent company was in default due to short deduction of the corresponding TDS. On the facts of the instant case, Section 201 (1A) is not attracted. Thi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s is not a case of non-deduction of TDS but one of short deduction of TDS for bona fide reasons. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagem .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... entindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X