Do We Need To Deduct Income Tax From Bonus? - CiteHR
Asst. Manager-hr & Admin
Korgaonkar K A
Accounts Manager
Nirav Gandhi
Sr Manager Hr & Administration
Executive - Hr/admin
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Dear Seniors, I have a question regarding the bonus. Do we need to deduct income tax from Bonus? If yes what is the persentage we have to reduce from bonus?
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As per the income tax act you have to deduct the Tax on bonus also.
All the components which are paid to employee comes under Income from Salaries.
The TDS is as like as Salary
Bonus always comes in tax bracket at the time of TDS calculation on ones salary, therefore, you pl add this head in gross salary and then tax will be deducted according to the normal income tax rate applicable as per financial year.
dear nijan,
every thing is applicable as per Income tax act,
here the % we calculate dependa upon the slab
For Eg:
1. If salary is between :1 - 2 laks (no tax)
2. If salary is between: 2- 5 laks ( 10%)
3. If salary is between: 5- 10 laks ( 20%)
4. if the salary is above 10 laks ( 30%).
this is how we generally calculate the tax .
calculate the bonus and add along with the salary then deduct his returns amount ,then calculate the tax on that ok.....
Dear member
Yes we have to deduct income tax from Bonus
1. salary is between :1 - 2 laks (no tax)
2. salary is between: 2- 5 laks ( 10%)
3. salary is between: 5- 10 laks ( 20%)
4. salary is above 10 laks ( 30%).
Regards, Srikanth
Intersoft International Pvt ltd
Thank you everyone for this valuable replay... but i have one more question if the bonus is 8% of the salary of employee. then how calculate that.
Ex: Employee getting 2.5 Lakhs per annum and bonus is 8% for the month. then how we calculate...?
Dear member, Bonus is taxable when it goes more than 20% in financial year otherwise bonus should not count in incometax.
Bonus also attracts income tax. Add the bonus amount also to the annual income and work out incomet tax workings and you can deduct the same balance payable Income Tax in equated monthly instalments.
Dear Sir,
Addition to this discussion, I have one question please clarify :
My company deduct bonus from salary but bonus is not distributed from last 3 years. then what is the procedure for TDS Deduction.
Dear All,
Kindly note that as per Income TAx Act, Salary Defines as whatever payments made by the employer under any sugar coated name to employee is considered as Salary and it will be included in his Gross Salary Incoem.
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