Bonus for calculation of TDS on salary


This query is : Resolved 

Quick Summary
This discussion clarifies the tax treatment of bonus provisions made in FY 2021-22. The consensus is that if the bonus is paid to employees in FY 2022-23, it should be added to their salary and considered for TDS calculation in FY 2022-23, not FY 2021-22. The provision itself is for company accounts and doesn't trigger TDS in the earlier financial year.

11 April 2022 Dear Sir,

Please help me, if our company made provision for Bonus for FY 2021-22. Whether this bonus amount need to be add each employee salary during the fy 2021-22 itself for calculating TDS for FY 2021-22. Or it is just provision for company account. or add this bonus amt in fy 22-23 when it is paid to employee.

11 April 2022 It is just provision for company account, add this bonus amt in fy 22-23 when it is paid to employee.


11 April 2022 Yes, bonus to be paid to employees in FY 2022-23 and to be recorded in the salary of employees in FY 2022-23 itself.


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