TDS on Bonus Provision
This query is : Resolved
12 March 2008
Our Company will be passed an entry by debiting to bonus account and crediting to bonus payable account on 31-03-2008. that bonus payable will be paid in june 2008.while calculating the staff personnel tax liability we have to add that amount of bonus of respective employee in 2007-08 financial year or 2008-09 financial year.
please clarify the bonus payment will be taxable in the hands of employee on receipt basis or accrual basis
please clarify the bonus payment will be taxable in the hands of employee on receipt basis or accrual basis
12 March 2008
In the personal return of employees, bonus will be taxable on accrual basis because it is covered under the head salary whereas in company return,deduction can be claimed only in the year of payment by vitture of section 43B.
12 March 2008
Bonus is taxable in the hand of employee on receipt basis. Whereas in case of the employer it has to be accounted on payment or accrual basis which ever is earlier.
12 March 2008
Bonus will be taxable in the hand of employee during Fy.2008-09 and not 2007-08.
12 March 2008
receipt basis
12 March 2008
ACCRUAL BASIS
12 March 2008
Bonus is taxable on under the head of salary. Hence it is chargeable to tax iin the hands of employees on due or receipt basis which ever is earlier
However inthe hands ofthe employer, the same is allowed as deduction only if the amount is being paid before the due date of filing the return of income. Otherwise it is allowed only in the year of payment.
However inthe hands ofthe employer, the same is allowed as deduction only if the amount is being paid before the due date of filing the return of income. Otherwise it is allowed only in the year of payment.
12 March 2008
That is only on Receipt basis
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