Tds on bonus

This query is : Resolved

BHUVANESH N (Querist)
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06 April 2015 Dear All

Kindly advice me on the following

We are going to pay an amount of Rs100000(One Lakh)to an ex-employee relating to the period 2011-12. Whether we have to deduct TDS under salary?

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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06 April 2015 Yes. If it is pursuant to a contract of employement, then you should. There;s no specific exemption for this.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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06 April 2015 Also, you may treat the date of accrual as the subject date for TDS. (I.e, need not show the expenses as pertaining to FY 11-12, since the bons was not actually quantifiable at that point of time.

BHUVANESH N

BHUVANESH N (Querist)
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07 April 2015 Thanks for the reply.Is it necessary to deduct TDS because the amount of bonus is within the tax exemption limit. Kindly clarify.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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07 April 2015 If the bonus amount +other salaries amount exceeds the tax exemption limit then onl you need to deduct tax at source.

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