Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Tds u/s 192b or 194h

Save Share

This query is : Resolved

SIJU VARGHESE (Querist)

17 March 2014 Dear Experts,

Pls answer to the following query,

A Pvt. Ltd. Co. giving sales incentive to its Sales Executives on the basis of their sales in addition to salary and deducting TDS U/s 192B for the whole. The expenses incurred for such sales should be met by the employees themselves. Some executives are going abroad for the sales and they have incurred huge expense for the same.
My query is that,
1. Whether the employees can deduct such expenses from their income while filing their return of income?
2.If no, whether the company can show the incentive as commission and deduct TDS U/s.194H, and then whether the employees are eligible for deduction for such expenses?

Thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 March 2014 well as such incentives paid to employees should be covered under 192 only....with regards to expense you should consider billing the same to the company in a manner that net profit of the executive remains same.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now