Hi, What is % of tds to be deducted on Incentive ? I find tds being deducted up to 40 % on my salary slip. Kindly let me know if it is legitimate.
Incentive has to be treated as salary. And at what percentage they are deducting it is totally dependent on your salary bracket. For eg if ur salary is 6 lakhs it would be deducted at 30.60. 5 lakhs it would be 30.60 4 lakhs it would be 20.60 so on. In case if you get it in the middle of the year you are going to be deducted at the highest rate, after taking into consideration into which salary bracket you are falling.