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This query is : Resolved

Ravuri.raghava (Querist)
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16 August 2013 Let us assume that the Annual salary is 3.6lac among which 0.6 lac is the Variable Performance pay (VPP)..

Among that VPP, he cannot get 100% since it is based on the performance of the employee..

Now, in order to deduct tax on behalf of the employee from his salary every month, what should be the salary that should be considered??

Kindly reply me in this regard..
1)If the VPP is received in the same year..
2)VPP is received in the subsequent year..
3)Can the VPP be considered as salary due??

Thanking You,
Raghava Ravuri

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 August 2013 Actual variable pay due on subsequent year only based on performance evaluation by the management. so it will be taxed on subsequent year only

Incase the VPP received in the same year then taxable in the same year since payment happened first

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