Hi,
We have decided to pay joining bonus of Rs.3 lakh to one of the employee. The total income for FY 2011-12 of the employee is Rs.12.50 lakhs. The total amount of tax liability excluding the bonus payment comes to Rs.8,721 (Rs.1,04,652 / 12 mths). When I am making a payment of bonus on 1st April then how much of TDS is to be deducted?? Whether I should include the Bonus amount and calculate the tax liability on the total income and spread the tax over 12 mths or deduct the TDS seperately on Rs.5 lakhs @ 30%. Please advice