We are private limited compnay in Mumbai. We are given Rs.80000 as incentive (like commission) to one of our employee who is also getting salary regularly on monthly basis. How should I treat this transaction in books of accounts. Should I deduct tds while making payment of incentive or should I deducted TDS in March 2015 on salary +incentives got by employer during the F.Y.? Please suggest.
i wil say yes deduct tds on that amount
Deduct TDS on this amount at the time of payment to the employee.
In my view payment of incentive to a salaried employee should be taxable under salary head and hence tds under section 192B will be governing law. Not section 194J.
Thanks,
SMJ global advisors pvt ltd
New Delhi
B.Com
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T R SOOD & CO
New Delhi
CA Inter
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V.K. Ranjan & Co(Chartered Accountants)
New Delhi
B.Com
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