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?
From India, Chennai
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19From India, Chennai
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As per the Income Tax Act, you have to deduct the tax on the bonus as well. All the components that are paid to employees come under Income from Salaries. The TDS is similar to Salary.
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From India, Hyderabad
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From India, Hyderabad
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Bonus always comes in the tax bracket at the time of TDS calculation on one's salary. Therefore, please add this head to the gross salary, and then tax will be deducted according to the normal income tax rate applicable as per the financial year.
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From India, Delhi
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Thanks
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From India, Delhi
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Income Tax Calculation on Salary and Bonus
Everything is applicable as per the Income Tax Act. The percentage we calculate depends upon the slab. For example:
1. If the salary is between 1 - 2 lakhs (no tax).
2. If the salary is between 2 - 5 lakhs (10%).
3. If the salary is between 5 - 10 lakhs (20%).
4. If the salary is above 10 lakhs (30%).
This is how we generally calculate the tax. Calculate the bonus, add it to the salary, then deduct the returns amount, and finally, calculate the tax on that. Ok...
Please let me know if you need further assistance.
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From India, Bangalore
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Everything is applicable as per the Income Tax Act. The percentage we calculate depends upon the slab. For example:
1. If the salary is between 1 - 2 lakhs (no tax).
2. If the salary is between 2 - 5 lakhs (10%).
3. If the salary is between 5 - 10 lakhs (20%).
4. If the salary is above 10 lakhs (30%).
This is how we generally calculate the tax. Calculate the bonus, add it to the salary, then deduct the returns amount, and finally, calculate the tax on that. Ok...
Please let me know if you need further assistance.
Regards
From India, Bangalore
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Yes, we have to deduct income tax from the bonus as per the following criteria:
1. Salary is between 1 - 2 lakhs (no tax).
2. Salary is between 2 - 5 lakhs (10% tax).
3. Salary is between 5 - 10 lakhs (20% tax).
4. Salary is above 10 lakhs (30% tax).
Regards,
Srikanth
[Phone Number Removed For Privacy Reasons]
Intersoft International Pvt Ltd
From India, Hyderabad
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1. Salary is between 1 - 2 lakhs (no tax).
2. Salary is between 2 - 5 lakhs (10% tax).
3. Salary is between 5 - 10 lakhs (20% tax).
4. Salary is above 10 lakhs (30% tax).
Regards,
Srikanth
[Phone Number Removed For Privacy Reasons]
Intersoft International Pvt Ltd
From India, Hyderabad
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Thank you, everyone, for this valuable reply, but I have one more question: if the bonus is 8% of the employee's salary, how do we calculate that?
Example Calculation
For example, if an employee is receiving 2.5 Lakhs per annum and the bonus is 8% for the month, how do we calculate it?
From India, Chennai
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Example Calculation
For example, if an employee is receiving 2.5 Lakhs per annum and the bonus is 8% for the month, how do we calculate it?
From India, Chennai
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Dear member, Bonus is taxable when it goes more than 20% in financial year otherwise bonus should not count in incometax.
From India, Mumbai
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From India, Mumbai
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Income Tax on Bonus
Bonus also attracts income tax. Add the bonus amount to the annual income and work out income tax calculations, then deduct the balance payable income tax in equated monthly installments.
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From India, Bangalore
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Bonus also attracts income tax. Add the bonus amount to the annual income and work out income tax calculations, then deduct the balance payable income tax in equated monthly installments.
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From India, Bangalore
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In addition to this discussion, I have one question. Please clarify: My company deducts a bonus from the salary, but the bonus has not been distributed for the last three years. What is the procedure for TDS deduction?
Thanks,
Parimal
From India, New Delhi
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Thanks,
Parimal
From India, New Delhi
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If his salary is 2.5 per annum and he receives a bonus of 10%, his gross salary increases to 2.75. Therefore, on 75,000, deduct 10% as the total tax, including the tax deducted earlier. For a salary of 2.5, you would have deducted 10% of 50,000, which is 5,000. Deduct another 2,500 from the 25,000 he receives.
From India, Delhi
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From India, Delhi
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Hello Friend, As per the income tax act you have to deduct the Tax on bonus and all related employees payment. Tax Deduction as per the IT slab applicable. Regards Lakshmipathy N 09952167716
From India, Coimbatore
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From India, Coimbatore
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Hi Friends, As per my knowledge, a bonus is a one-time payment. Therefore, after considering the taxable income on salaries, we need to include these additional payments as taxable according to the employee's eligible income tax slabs.
From India, Hyderabad
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From India, Hyderabad
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Dear all, I have one doubt someone plz clarify ;- Is OT , Incentive or Bonus comes under TDS or not and what are the rules related heads... thanks with regards Ompal Chhoker
From India, Pune
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From India, Pune
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Income Tax Calculation 2009-10 - Salaries.xls