TDS on previous year income

Dear Sir,

There is a slight mismatch in the rules

1)  Salary is taxable on receipt or due whichever is earlier basis.

2)  TDS on salary is to be deducted at the time of payment.

So if this performance Bonus was due as on 31.03.2010, then the safe option is to deduct Tax in terms of FY 2009-10. (Becos it will be appearing in Form 16 for FY 2009-10) 

If this Performance Bonus became due on or after 01.04.2010 then U can treat it in the FY 2010-11..