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This query is : Resolved

Ramana Rao (Querist)
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15 February 2012 If an employee receives salary of rs 230400/for 12 months ie 19200 per month
and his deductions on account of hra,medical.conveyance,professional tax is 58800 leaving 171600 as gross total income and has exemption 100000 under section 80dd
his income comes to 71600 well below i80000 limit.
in march 2012 suppose he recieves rs 19200 his salary and bonus on account of completion of project successfully as per his salary package his total income after all deductions comes to rs 332075 and his tax liability is rs 15665.
my question is till he recieves bonus he does not come under tax bracket,however on recieving bonus he comes under tax bracket
in such cases when should the employer deduct tds? only in march?
please clarify
please remember that he has no other income and bonus is subject to completion of project and payable only in march by a single payment

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 February 2012 yes. since the bonus is based on the completion of project then it not yet accrued or paid till march. so it will be added in march and deduct tds in single deduction and pay

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