Say, a company is paying certain type of incentive to their employee on achieving their target work. Here My question is,
1. Should company show this expense under salary head or just expense out as extra incentive?
2. should company deduct tds for incentive payment & when should it be deducted?
Yes the amount will be taxable in the hand of employees and Tax need to be deducted on the same.
Secondly you can show it as proformance pay under salaries expenses and allowed as expenses.
Regards
Thank your sir.
CAclubindia
