Hello Aniket,
Bonus received by an employee is charged to tax in the year of receipt, and leave encashment of unused paid leave during the employment period is taxable as it is considered as income from salary. In this case, the related employee can get tax relief under Section 89.
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94Bonus received by an employee is charged to tax in the year of receipt, and leave encashment of unused paid leave during the employment period is taxable as it is considered as income from salary. In this case, the related employee can get tax relief under Section 89.
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Professional tax is calculated on the basis of gross income received during the period of tax. Additional incomes like bonuses and leave surrender salary automatically merge with the gross income pertaining to the period of tax. Therefore, there is no need to deduct tax separately on such incomes.
From India, Salem
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From India, Salem
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