sprash
Hello all,
Last month I received my Performance Pay or Bonus from my company for 2011-12. However, out of the bonus amount I was supposed to get, I got only 85% of it - remaining 15% has been taken as tax.
Now, can I claim the full 15% tax refund - if I invest the same in Mutual Fund / PPF / or any Section 80C tax savings scheme? If not, then how much of bonus tax am I allowed to claim as per the law?
Regards

From India, Chennai
BrainLight HR Solutions
18

Hi Sprash,
Bonus / Performance pay is taxable, few companies do not refund tax once it is deducted and paid to Income Tax authorities.
Yes, you can ask for adjustment in remaining 6 months salary till March-2013. Tax is always deducted based on your yearly estimated income. If you are under taxable income category after doing all investment then tax will be deducted.
You can provide investment declaration to your employees so that in next 6 months tax will be deducted based on your declared investment and estimated income.
BrainLight HR Solutions

From India, Mumbai
karthik nayudu
80

Hi
The Statutory Bonus usually your one month basic will be paid as Bonus this is non taxable.
The PBB is taxable all Mutual funds, etc are savings It will consider only 1 Lakh under savings.
The expenses like Driver Salary(Max 8000/Month), HRA(20000 or 40% of Basic/Month) , Medical Reiumbursement(1250/Month), Convayance(800/Month), Children Tution fee (As per actuals), Interest on House Loan) etc are exempted from IT.
The normal tax exemption is for 200000/Annum.
If you can share your Gross and PBB I'll workout and send you the detailed procedure to claim.
Regards
Karthik

From India, Vijayawada
pon1965
604

Performance incentive or annual bonus are part of your income. If your income falls under taxable slab, the tax will be deducted at source and deposited with I.T. Pon
From India, Lucknow
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.