Hi All,
I am having the query about the Income Tax deduction on Retention Bonus, Please help me about same.
Query:
An organisation is giving retention bonus to employee on completion on a candidate year.
(If an employee leaves or fired from company then he/she won't be getting Retention Bonus).
As the retention bonus is given at the end of candidate year, so the income tax should be deducted at the time when employee is getting paid.
But the organisation is deduting the income tax on rentention bonus from employee's salary on monthly basisi in whole financial year irrespective of whether he get the retention bonus or not.
So is it legal to deduct the income tax on retention bonus at the time of getting it?
OR
Is it Income tax deduction from an employee's salary in whole year on monthly basis?
Please clarify or suggest, I want income tax to be deducted at the time of getting Retention Bonus so that my monthly take-home will be good enough.
If possible, please provide me link or name of rule or law to support these things.
CAclubindia
