vinayak c. chavan (CPT passed) (1011 Points)
27 November 2014We are private limited compnay in Mumbai. We are given Rs.80000 as incentive (like commission) to one of our employee who is also getting salary regularly on monthly basis. How should I treat this transaction in books of accounts. Should I deduct tds while making payment of incentive or should I deducted TDS in March 2015 on salary +incentives got by employer during the F.Y.? Please suggest.
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 27 November 2014
i wil say yes deduct tds on that amount
Mihir
(Wealth Manager)
(5293 Points)
Replied 27 November 2014
Deduct TDS on this amount at the time of payment to the employee.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 28 November 2014
In my view payment of incentive to a salaried employee should be taxable under salary head and hence tds under section 192B will be governing law. Not section 194J.
Thanks,
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