Understanding Incentives, Bonuses, and Salary Components: Your Tax and TDS Questions Answered

Hello,

I would like to request information on the following:
1) Is incentive taxable?
2) Is incentive different from a bonus?
3) When referring to Gross Salary, does it include Extra Work, or is it only HRA+Basic+Conveyance+other allowances?
4) If the rent paid for an office, let's say Rs. 15,000/- to a single person, is there any exemption (when calculated annually), and what would be the TDS that needs to be deducted?

Thank you in anticipation.

Regards,
Shylaja

Hi All,

I also have the same question. Could you please provide some suggestions on this topic?

Looking forward to hearing from all of you.

Regards,
Shanthi

Hi,

As per your question, I would like to help you check it.

1) Bonus and Incentive are different. Bonus comes under statutory obligations, but incentives are not covered as they depend upon employee performance. The quantum is not fixed.

2) The threshold limit for rent is INR 120,000 annually. The rate is 15.995% for HUF and individuals.

3) Gross salary includes Basic, HRA, Allowances, and PF Contribution.

Hi,

As per your question, I would like to help you check it.

1) Bonus and Incentive are different. Bonus comes under statutory obligations, but incentives are not covered as they depend upon employee performance. The quantum is not fixed.

2) The threshold limit for rent is Rs. 120,000 annually. The rate is 15.995% for HUF and INDIVIDUAL.

3) Gross salary includes Basic, HRA, Allowance, and P.F. Contribution.

Thanks for your information. I need some more clarification on this. Suppose the incentive amount is Rs. 21,000, whether we have to deduct tax of Rs. 200.

Please let me know if you need further assistance or clarification.